proposal to make it easier for funds to hold crypto
The U.S. SEC has proposed new rules to create a formal framework for investment advisers to hold cryptocurrency assets on behalf of clients. This move aims to modernize custody requirements and provide a compliant pathway for crypto-related investment strategies.
Why it matters
It provides much-needed regulatory clarity for institutional crypto adoption in the U.S. following the stagnation of broader legislative efforts in Congress.
The U.S. Securities and Exchange Commission has proposed new rules that would make it easier for investment advisers and regulated funds to hold cryptocurrencies on behalf of clients, as U.S. regulators push ahead with writing crypto rules after a sweeping legislation stalled in Congress.
The proposal, announced Thursday stateside, would establish a tailored framework governing how registered investment advisers, investment companies and business development companies hold custody of crypto assets.
The changes are aimed at modernizing decades-old custody requirements and removing regulatory barriers that the SEC says have limited advisers' ability to offer crypto-related investments.
Under the proposed rules , crypto assets could be held in self-custody under "certain circumstances," while state trust companies could also serve as custodians for crypto assets belonging to clients and regulated funds.
The changes could also give regulated funds greater scope to offer investors crypto-related investment strategies, according to the SEC.
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