SEC Proposes Rules That Could Change How Funds Custody Crypto

Key points

• The SEC proposed rules creating a framework for crypto asset custody by registered investment advisers and regulated funds under federal securities laws.
• The proposal would permit custody via state trust companies and self-custody in certain conditions, and updates audit and broker-dealer custodial requirements.
• Chairman Paul Atkins said existing 1940-era rules predate the internet; the proposal is not final and is open for 60 days of public comment.

AI summary of CryptoPotato’s report, written only from the publisher’s text. Read the original for full context.