On Thursday, October 1, 2026, the Securities and Exchange Commission proposed new rules and amendments creating a tailored framework for how registered investment advisers and regulated funds hold crypto assets in custody.
The proposal covers registered investment advisers, as well as registered investment companies and business development companies. The agency said the changes would update existing custody requirements and remove regulatory barriers that have limited advisers’ ability to offer crypto-related investment advice. They would also give regulated funds room to offer clients a broader selection of crypto asset strategies.
The rules and amendments fall under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. According to the SEC, they are intended to reflect current industry practices and revise a range of requirements, including those governing financial statement audits for registered investment advisers and broker-dealer custodial services for regulated funds.
The proposal would also allow crypto assets to be held in self-custody under certain circumstances. In addition, it would permit state trust companies to serve as custodians for crypto assets belonging to clients and regulated funds.
SEC Chairman Paul S. Atkins said the crypto market has grown from a niche curiosity into a multi-trillion-dollar asset class since Bitcoin emerged in 2008, but that regulations have not kept pace. He said the proposal would give advisers and funds a compliant pathway where none previously existed, and would replace uncertainty stemming from custody rules written for an earlier era.
The public comment period will stay open for 60 days after the SEC’s proposing release is published in the Federal Register.
Source: SEC
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