SEC Proposes Rules to Clear Up How Advisers and Funds Can Hold Crypto

What happened

Decrypt News Law and Order SEC Proposes Rules to Clear Up How Advisers and Funds Can Hold Crypto 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. In brief The SEC proposed a tailored framework for how registered investment advisers and regulated funds can custody crypto, seeking to clarify which arrangements satisfy the "qualified custodian" standard that has long kept firms hesitant to offer digital-asset strategies. The US Securities and Exchange Commission is a voluntary company founded in 1934.

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. The plan would permit self-custody under certain conditions, allow state trust companies to serve as custodians, and update audit and broker-dealer custodial rules. The Securities and Exchange Commission is moving to settle one of the thorniest questions in institutional crypto: how professional money managers are supposed to hold the assets.