The U.S. Securities and Exchange Commission proposed crypto custody rules for registered investment advisers and regulated funds. The proposal would let advisers hold client crypto themselves if they have the necessary custody experience and internal controls. Self-custody would generally apply where no appropriate qualified third-party custodian exists, and advisers would have to reassess those arrangements regularly as options change.
The proposal would also allow certain state trust companies to hold crypto for advisers and regulated funds. It would revise standards for auditing registered advisers’ financial statements and cover broker-dealer custodial services for registered investment companies and business development companies.
