SEC Proposes Rules for Crypto Custody by Investment Advisers

The U.S. Securities and Exchange Commission (SEC) has proposed new rules to simplify how investment advisers and regulated funds can hold cryptocurrencies. This initiative aims to update custody regulations that have not kept pace with the growth of the digital asset market, exceeding multi-trillion dollars. The proposal allows for self-custody of crypto assets under specific conditions and permits state trust companies to act as custodians. The changes could also lead to more competitive offerings in crypto investment strategies, which matters for investors seeking diversified options in the evolving market.