SEC Proposes New Crypto Self-Custody Rules
- SEC Chairman Paul Atkins announced a proposal allowing investment advisers to self-custody crypto assets.
- The initiative is part of a broader SEC framework, including Regulation Crypto Assets and transfer-agent modernization.
- Regulation Crypto Assets allows certain crypto offerings up to $75 million annually with specific exemptions.
- State trust companies may qualify as custodians for digital assets under the new rules.
- The Senate failed to advance the CLARITY Act, which could have addressed crypto asset investment contract issues.
The SEC’s proposal aims to clarify how investment advisers can directly hold crypto assets, addressing the lack of qualified third-party custodians for many digital assets. This move is part of a larger effort to establish clear regulations for issuing, transferring, and holding crypto assets under federal securities law.
By allowing self-custody and potentially involving state trust companies as custodians, the SEC seeks to resolve longstanding questions about which institutions can hold digital assets for registered advisers and funds.(Source)
