SEC proposed to clarify the rules for investment advisors and fund custody of cryptocurrency assets

On Thursday, the U.S. Securities and Exchange Commission (SEC) proposed new regulations aimed at clarifying the requirements for investment advisors and regulated funds regarding the holding and custody of client cryptocurrency assets, as well as standardizing record-keeping, federal disclosures, industry operations, and audit requirements. SEC Chairman Paul Atkins stated that the current custody rules primarily focus on traditional assets, and the new regulations will provide a regulatory framework for the custody of cryptocurrency assets.

The proposal is open for public comment for 60 days and intends to allow self-custody of cryptocurrency assets and the use of state-chartered trust companies as custodians under certain conditions.