According to Cointelegraph, the U.S. Securities and Exchange Commission has introduced a proposal that aims to address a current regulatory barrier affecting some investment advisers who wish to offer cryptocurrency assets to clients. The proposal seeks to modify existing custody requirements that have prevented certain advisers from providing crypto-related investments under current rules.
Under present regulations, investment advisers must meet specific custody standards when holding digital assets for clients. These standards can create practical challenges for advisers, limiting their ability to offer a range of crypto products or services. The SEC’s proposed rule would clarify and streamline the custody framework for advisers offering crypto assets, with the goal of reducing administrative burden while maintaining appropriate safeguards.
The proposal does not alter requirements for client protection, risk disclosure, or oversight; it focuses narrowly on the custody condition that currently acts as a hurdle. The SEC indicates the change is intended to support market efficiency and access for qualified advisers who comply with all other regulatory obligations.
