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      SEC Proposes New Custody Standards for Crypto Assets

      On October 1, 2026, the U.S. Securities and Exchange Commission (SEC) proposed a new framework for the custody of cryptocurrency assets, signaling ongoing regulatory efforts in the digital asset space. SEC Chair Paul S. Atkins announced that additional regulatory proposals are forthcoming, emphasizing the need for updated standards that reflect the unique nature of blockchain-based assets compared to traditional securities.

      The proposed custody framework aims to address outdated rules that do not adequately apply to digital assets. Notably, it would permit self-custody of crypto assets under specific conditions and allow state trust companies to act as custodians, thereby expanding the range of entities eligible to hold assets for investment advisers and funds. The proposal also revises recordkeeping requirements for these financial entities.

      This initiative follows the SEC's earlier proposal on August 18, 2026, which introduced Regulation Crypto Assets, offering exemptions for fundraising and a conditional safe harbor for certain definitions. The agency's recent actions come amid a personnel change, with Commissioner Hester M. Peirce departing after the custody proposal's announcement. The SEC will accept public comments on the new custody framework for 60 days after its publication in the Federal Register, allowing stakeholders to provide feedback that could influence the final rules.

      © 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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