SEC moves to clear custody hurdle for advisers offering crypto
Custody requirements have kept some investment advisers from offering certain crypto to clients, a regulatory hurdle the SEC’s proposal could remove.
The US securities regulator has proposed easing rules governing how investment advisers and funds hold crypto, potentially clearing a regulatory hurdle that has held some businesses back from offering clients digital asset investments.
The proposal, published on Thursday, would let investment advisers hold clients’ crypto assets themselves when no eligible crypto custodian is available, with conditions. It would also allow state trust companies to serve as crypto custodians.
“The crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure. Unfortunately, our rules and regulations have not kept pace,” US Securities and Exchange Commission Chair Paul Atkins said in a statement.