SEC Proposes Crypto Custody Rules for Funds — SkimNews
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- SEC proposed new rules establishing a tailored custody framework for crypto held by registered investment advisers, investment companies, and business development companies.
- Crypto assets could be held in self-custody under "certain circumstances," with state trust companies also able to serve as custodians for client and fund assets.
- Paul Atkins said existing rules "failed to keep pace" with the multi-trillion-dollar digital asset market and called the proposal "a compliant pathway where none existed before."
- The proposal gives regulated funds greater scope to offer crypto-related investment strategies to investors, per the SEC.
- The rulemaking follows the Clarity Act's September stall in the Senate, leaving regulators to build the crypto rulebook under existing authority.
- The proposal will be open for public comment for 60 days after publication in the Federal Register.
- Bitcoin has rebounded over 40% from its July low, recovering from a downturn that ran from late 2025 into the first half of 2026.
Why it matters: The proposal gives investment advisers and funds a concrete regulatory pathway for crypto custody where none existed before, arriving as Bitcoin's 40%+ rebound from its July low revives demand for digital assets. With the Clarity Act dead in the Senate, the SEC is now defining the rules unilaterally — the 60-day comment window is the industry's best shot at shaping the framework.
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