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      U.S. SEC Proposes Custody Framework for Cryptocurrency Assets

      Paul Atkins, the Chairman of the U.S. Securities and Exchange Commission (SEC), announced a proposal aimed at establishing a custody framework for cryptocurrency assets. This initiative seeks to address regulatory gaps concerning the custody of these digital assets by investment advisors and funds, responding to the growing demand from clients for clearer compliance pathways in this emerging asset class.

      Atkins highlighted that existing custody regulations, rooted in the Investment Advisers Act of 1940 and the Investment Company Act of 1940, were designed before the digital age and primarily focus on traditional assets. The current rules require the use of approved custodians, which has resulted in custody capabilities for new cryptocurrency assets often lagging behind their launch by several months. The proposed framework aims to modernize these rules to better align with contemporary industry practices and feedback.

      This proposal is part of a broader regulatory strategy by the SEC regarding cryptocurrency assets. Additional initiatives include halting the replacement of regulation with enforcement, issuing a no-action letter for a pilot program on the tokenization of securities by custodial trust companies by December 2025, and publishing a classification description for tokenized securities in January 2026. Atkins indicated that further regulatory proposals will be introduced in the near future.

      © 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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