The 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 official sources, the U.S. Securities and Exchange Commission (SEC) has proposed establishing a new regulatory framework to govern the custody of crypto assets by investment advisers and regulated funds. The framework is intended to provide a "compliant path" for holding digital assets under a set of rules largely formulated before the internet era.

SEC Chairman Paul Atkins said: "Since the birth of Bitcoin in 2008, the crypto asset market has grown from a niche novelty into a multi-trillion-dollar asset class, and investors are actively seeking related exposure. Unfortunately, our rules and regulations have failed to keep pace with this development."

The proposal would address a key issue facing institutional investors, namely that qualified custody infrastructure may not currently exist for some crypto assets. The proposal would also, 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. This is significant for asset management firms, hedge funds, and other institutions that wish to directly hold Bitcoin and other crypto assets rather than gain exposure through ETFs or other intermediaries.

In addition, the proposal would, under limited circumstances, allow investment advisers to "self-custody" clients' and regulated funds' crypto assets, including cases where the investment adviser determines that no qualified 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.