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      SEC Proposes New Custody Rules for Crypto Assets

      The U.S. Securities and Exchange Commission (SEC) has proposed new custody rules for crypto assets held by registered investment advisers and regulated funds. Announced on October 1, 2026, the proposal, titled "Adviser and Regulated Fund Custody Rules; Crypto Custody Rules," aims to modernize existing custody standards and enhance transparency in reporting and recordkeeping for firms handling digital assets.

      This initiative follows a previous safeguarding proposal from 2023, which was withdrawn in June 2025. The SEC's Crypto Task Force has been instrumental in developing this new framework, which builds on interim guidance issued in 2025 that allowed select state-chartered trust companies to act as qualified custodians for crypto assets. The proposal has undergone review by the Office of Management and Budget since late August 2026, prior to its release.

      The SEC will accept public comments on the proposal for 60 days after it is published in the Federal Register. The outcome of this proposal could significantly impact how advisers and funds manage crypto assets, potentially solidifying the role of state-chartered trust companies as custodians in the evolving digital asset landscape.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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