What the SEC’s Proposed Crypto Custody Rules Would Change

On October 1, 2026, the U.S. Securities and Exchange Commission proposed rules and amendments to create a tailored framework for custody of crypto assets by registered investment advisers and regulated funds. The proposal is not a final rule. It would allow self-custody in some circumstances and permit state trust companies to serve as custodians. 35

Who the proposal covers

The proposed framework covers registered investment advisers and regulated funds, including registered investment companies and business development companies. The SEC said the changes are intended to modernize custody rules and address barriers that can limit advisers’ ability to offer crypto-related investment advice. 3

What custody options it would provide

Under the proposal, advisers and funds could hold crypto assets themselves in certain circumstances. State trust companies could also serve as custodians. These are proposed options, not permissions that are already in effect. 56

Atkins’s stated rationale

SEC Chair Paul Atkins said the proposal would provide “a clear regulatory framework” and “a compliant pathway where none existed before.” He described existing custody rules as out of step with crypto assets. 914

The proposal’s immediate significance is that it sets out a possible regulatory route for advisers and funds handling crypto assets. Whether that route becomes binding depends on the rulemaking process; the October 1 announcement itself did not make the proposed requirements final. 39