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
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.
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 |
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."
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:
It's also another sign of a shift in the SEC's approach, from enforcement-first towards writing clearer rules.
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.
Watch for public comments from banks, custodians and crypto firms, and for any changes the SEC makes before a final vote.
This article is for information only and is not legal or financial advice.