Securities and Exchange Commission proposes new custody rules for crypto assets

Securities and Exchange Commission: The Securities and Exchange Commission is the primary U.S. federal regulator responsible for overseeing securities markets, enforcing federal securities laws, and supervising investment advisers, funds, and other market participants. It proposed new rules and amendments on October 1, 2026, to create a tailored custody framework for crypto assets held by registered investment advisers and regulated funds. This action modernizes existing custody requirements to expand options for crypto-related investment advice while addressing current industry practices. Scope: This rulemaking targets custody arrangements specifically for registered investment advisers and regulated funds, complementing separate proposals addressing broker-dealer crypto activities. Regulation: The SEC has advanced a dedicated crypto custody rulemaking for advisers and funds, building on interim staff guidance from 2025 that permitted certain state-chartered trust companies to serve as qualified custodians. Policy Development: The proposal aligns with broader SEC efforts under its Crypto Task Force to integrate blockchain and digital assets into traditional securities infrastructure, including clarifications for both security and non-security crypto assets.