U.S.SEC U.S. proposes crypto asset custody framework, allowing advisers and funds to self-custody in certain circumstances

AT A GLANCE

United States SEC Proposes regulating the custody of crypto assets by investment advisers and regulated funds, while allowing self-custody under specific circumstances.

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⚡️U.S.SEC Plans to establish a dedicated regulatory framework for investment advisers and funds to self-custody crypto assets

BlockBeats news,October 2, according to an official announcement, the U.S. Securities and Exchange Commission (SEC) has proposed establishing a new regulatory framework to regulate crypto asset custody by investment advisers and regulated funds. The framework aims to provide a “compliance pathway” for holding digital assets under a set of rules largely created before the internet era.SEC Chairman Paul Atkins said: “Since Bitcoin was created in 2008, the crypto asset market has evolved from a niche novelty into an asset class worth several trillion USD with investors actively seeking exposure. Unfortunately, our rules and regulations have failed to keep pace with this development.”

The proposal would address a key issue facing institutional investors: suitable custody infrastructure may not yet exist for some crypto assets. It would also, in certain circumstances, permit crypto assets to be self-custodied and allow state-chartered trust companies to provide custody services for clients’ and regulated funds’ crypto assets. This is significant for asset managers, hedge funds, and other institutions that wish to hold Bitcoin and other crypto assets directly, rather than gain exposure through ETF or other intermediaries.

In addition, the proposal would, in limited circumstances, permit investment advisers to “self-custody” crypto assets belonging to clients and regulated funds, including situations in which an investment adviser determines that no qualifying custodian is available.SEC Commissioner Hester Peirce further clarified that “self-custody” here means the investment adviser acts as the custodian of client assets, rather than investors directly controlling their own crypto assets.

Original link https://m.theblockbeats.info/flash/369971

Key points

BlockBeats reports that the U.S. Securities and Exchange Commission (SEC) proposed establishing a new regulatory framework to regulate crypto asset custody by investment advisers and regulated funds.
The framework is intended to provide a “compliance path” for holding digital assets under a set of rules established largely before the Internet era.
SEC Chair Paul Atkins said that the crypto asset market has developed into an asset class worth several trillion USD in value, while rules and regulation have failed to keep pace with this development.
The proposal would, under certain circumstances, permit self-custody of crypto assets and allow state-chartered trust companies to provide custody services for clients’ and regulated funds’ crypto assets.
SEC Commissioner Hester Peirce clarified that “self-custody” in the article refers to investment advisers serving as custodians of client assets, rather than investors directly controlling their own crypto assets.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This proposal focuses on how institutions can compliantly safeguard crypto assets. According to the text, under limited conditions, an investment adviser may serve as the custodian of client assets itself; state-chartered trust companies may also provide related custodial services. Here, “self-custody” does not mean ordinary investors holding crypto assets themselves.

Why it matters to readers

The article notes that some crypto assets may not yet have qualified custody infrastructure. If the proposal results in corresponding rules, it would determine whether institutions such as asset management companies and hedge funds can directly hold Bitcoin and other crypto assets, rather than having to obtain exposure solely through ETF ETFs or other intermediaries.

Beginners should distinguish between a “proposal” and rules that have formally taken effect, and should also note that the discussion here concerns custody arrangements for investment advisers and regulated funds, not permission for individual investors to self-custody.

Risks and unknowns

The materials provided only include a BlockBeats account and a link to its original source; they do not provide SEC the original announcement or proposal text, and the content still requires verification.
The current content describes a proposal; the evidence cannot confirm whether it will be approved or when it will be implemented.
The evidence does not fully specify the complete conditions applicable to self-custody, the standards for eligible custodians, or the specific qualification scope for state-chartered trust companies.

U.S.SEC U.S. proposes crypto asset custody framework, allowing advisers and funds to self-custody in certain circumstances

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