US SEC Outlines New Crypto Custody Framework for Registered Asset Managers
A draft regulation from the SEC introduces clear digital asset custody requirements for registered investment advisers and mutual funds.
The US Securities and Exchange Commission introduced a proposed regulatory framework on October 1, 2026, establishing dedicated custody rules for cryptocurrency holdings managed by registered investment advisers and regulated funds. The proposal moves ahead independently of Congress, where the CLARITY Act remains stalled in the Senate, and is subject to a 60-day public comment window after appearing in the Federal Register.
The draft rules target investment advisers, US mutual funds, and business development companies. The framework authorizes state-chartered trust companies to serve as qualified custodians, permits adviser self-custody under defined security requirements, modernizes custody through broker-dealers, and revises annual audit procedures for advisory firms.
According to SEC Chair Paul Atkins, regulatory frameworks had lagged behind the expansion of digital assets, which he described as having grown from a niche concept since 2008 into an asset class worth several trillion dollars.
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