SEC Proposes New Rules for Crypto Custody by Advisers and Trusts
Oct 2, 2026
The SEC proposed rules that would let investment advisers self-custody crypto when no qualified custodian is available, and allow state trust companies to act as crypto custodians.
The U.S. Securities and Exchange Commission has proposed new rules aimed at clarifying how investment advisers and regulated funds can custody crypto assets under federal securities laws.
Under the proposal, advisers could self-custody client crypto assets when no permitted custodian is available, subject to cybersecurity, expertise, reporting, annual-review, and disclosure safeguards. Advisers would need to confirm that determination before taking self-custody and again each quarter.
State trust companies as custodians
The proposal would also allow state-chartered trust companies to serve as permitted crypto custodians, provided the custodian is authorized by its state banking authority and has written policies designed to protect assets from theft, loss, misuse, and misappropriation.
SEC Chair Paul Atkins said the rules would give advisers and funds "a clear regulatory framework for the custody of crypto assets" and a compliant pathway where uncertainty had existed before. The proposal is not final and remains open for public comment.
Commissioners noted that earlier custody rules left many advisers without workable options for crypto, and that clarifying state trust companies and limited self-custody could expand investor protection and competition.