SEC Proposes Crypto Self-Custody Route for Investment Advisers
The SEC has proposed a new rule allowing investment advisers to make use of crypto self-custody, while also laying out conditions under which state trust companies may provide custody services. The agency will accept public comments on the proposal for 60 days after it appears in the Federal Register.
Why It Matters
The proposal would create a formal pathway for advisers to incorporate self-custody of crypto assets into client strategies and clarifies custodial standards for state trust companies, potentially shaping how regulated advisers manage digital-asset custody. The 60-day public comment period gives market participants and stakeholders a window to respond before any final rule is adopted.
Key Facts
- Regulator: U.S. Securities and Exchange Commission (SEC)
- Subject: Proposal enabling crypto self-custody for investment advisers
- State trust company custody: Proposal includes conditions for custody by state trust companies
- Public comment deadline: 60 days after publication in the Federal Register
The Securities and Exchange Commission has put forward a proposal that would establish a self-custody option for investment advisers dealing with crypto assets. The draft rule also delineates conditions under which state-chartered trust companies could act as custodians for those assets. By specifying custody conditions for state trust companies alongside a self-custody route, the proposal aims to create clearer regulatory parameters for how advisers may hold and safeguard client digital assets. The SEC’s approach signals an interest in defining acceptable custody arrangements in the emerging crypto custody landscape. Stakeholders will have an opportunity to weigh in: the SEC will accept public comments on the proposal for 60 days following its publication in the Federal Register. Those comments will be part of the record the agency considers before deciding whether to finalize the rule or make revisions.
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