SEC Proposes New Rules On Crypto Custody

Key points

• The SEC proposed rules updating how investment advisers and regulated funds custody assets, letting them self-custody client crypto only when no permitted custodian is available.
• The proposal would allow state trust companies as custodians and let blockchain-based records count toward compliance, both subject to conditions, the regulator said.
• Chairman Paul Atkins said rules had not kept pace with the market; the rulemaking follows lawmakers blocking the Clarity Act in a procedural vote.

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