SEC Proposes Crypto Custody Rules for Investment Advisers and Funds

By Kevin · 2026-10-02 · News

WASHINGTON, Oct. 2 (CandyPulse) — The U.S. Securities and Exchange Commission has taken a step that could make it much easier for professional money managers to hold crypto for their clients. On Oct. 1, the SEC proposed a new custody framework for registered investment advisers and regulated funds.

Key takeaways

The SEC proposed a tailored crypto custody framework for advisers and funds
State trust companies could act as crypto custodians
Advisers could self-custody crypto in some cases, if no authorized custodian is available
It's a proposal, with a 60-day public comment period

Why custody matters

When a financial adviser manages your money, the law says your assets generally have to be held safely by a qualified custodian, a trusted institution that keeps them secure.

For crypto, that's been a headache. The rules were written for stocks and bonds, not digital tokens held with private keys. Many advisers have stayed away from crypto simply because it wasn't clear how to hold it legally.

What the SEC is proposing

The proposal covers registered investment advisers (RIAs) and regulated funds, including registered investment companies and business development companies. Two key ideas stand out:

Option	What it would allow
State trust companies	Could serve as custodians for crypto assets
Self-custody	An adviser could hold client crypto itself, but only if no authorized custodian is available

The SEC's view

SEC Chairman Paul Atkins said the proposal would provide "a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before."

Why it matters

Investment advisers manage trillions of dollars for ordinary savers, retirees and institutions. If they gain a clear, legal way to hold crypto, it could open the door to:

More advisers offering crypto to their clients
More funds holding digital assets directly
More institutional money flowing into the market over time

It's also another sign of a shift in the SEC's approach, from enforcement-first towards writing clearer rules.

Important caveat

This is not final. The proposal now opens for a 60-day public comment period once it's published in the Federal Register. The SEC could change it, sometimes significantly, before adopting a final rule.