SEC Proposes Rules to Clear Up How Advisers and Funds Can Hold Crypto
60-second summary
The SEC proposes new rules allowing advisers and funds to employ state‑chartered trust companies as custodians and, under defined conditions, to hold crypto assets themselves, replacing years of regulatory ambiguity with a clear compliance pathway; this guidance could broaden institutional participation, boost custody service demand, and potentially accelerate capital inflows into the cryptocurrency market.
The proposal would let advisers and funds use state trust companies as custodians and permit self-custody under certain conditions, aiming to replace years of ambiguity with a clear compliance path.