On October 1, 2026, the U.S. Securities and Exchange Commission issued a proposal titled “Adviser and Regulated Fund Custody Rules; Crypto Custody Rules.” The package addresses, for the first time in a dedicated framework, how registered investment advisers may hold client crypto assets and how regulated investment companies may custody crypto securities and similar investments.
Under the proposal, advisers and regulated funds could self-custody crypto assets in specified circumstances, or hold them through state-chartered trust companies, subject to conditions. The SEC also proposes to modernize the existing custody rules to reflect current industry practice and market feedback, update related reporting and recordkeeping requirements, and redesignate the custody rule under the Investment Advisers Act.
The measures are proposals only and do not yet change current obligations. Public comments are due by December 7, 2026, under File No. S7-2026-35. Advisers, fund sponsors, and custodians active in digital assets should review the proposal and consider participating in the comment process, since the final rule is likely to shape custody arrangements and service-provider contracts going forward.