SEC Crypto News: New Custody Rules Could Let Funds Hold Crypto
SEC Crypto News: New Custody Rules Could Let Funds Hold Crypto
This SEC Crypto News update covers a proposal the U.S. Securities and Exchange Commission released on October 1, 2026, per its press release 2026-100.
The Commission proposed new rules and amendments for registered investment advisers (RIAs) and regulated funds, meaning registered investment companies and business development companies (BDCs).
As of October 2, 2026, [11:03] AM IST, Bitcoin was trading near $86,325. For SEC crypto news today, note that the agency gave no price outlook, so any SEC crypto proposal Bitcoin price link remains unproven.
What Is SEC Crypto Custody Framework?
Here is the SEC crypto proposal explained simply. The Investment Advisers Act of 1940 and the Investment Company Act of 1940 shaped older rules built for traditional assets.
The proposing release says few traditional custodians offered robust crypto asset services.
The Crypto Task Force, formed in January 2025, fed this work, and the release cites a global market near $2.7 trillion in May 2026. The Investment Advisers Act crypto changes would move rule 206(4)-2 to rule 223-1.
Can Investment Advisers Hold Crypto Under the Proposal?
These proposed SEC crypto custody rules widen crypto for investment advisers beyond today's qualified custodians.
Route | Key Conditions |
Adviser self-custody | Written quarterly finding that no permitted custodian exists; two-person approval; separate client addresses |
State trust companies | State banking authority approval; written safeguard policies; annual audited financials; asset segregation |
Self-custody also needs internal control reports within six months. Commissioner Hester Peirce's statement says SEC self-custody crypto means advisers acting as custodians, not investors holding keys.
State trust companies crypto custody needs yearly due inquiry. The open question is whether the SEC allows state trust companies to crypto with enough safeguards.
Can Funds Self-Custody Crypto SEC Rules Permit?
A regulated fund could hold crypto through its adviser if the adviser meets the conditions. The fund board would review the adviser's custodian finding quarterly.
What Do SEC Crypto Rules for ETFs and Mutual Funds Cover?
People searching SEC crypto rules for ETFs and mutual funds should know the release names only registered investment companies and BDCs. It also modernizes broker-dealer custody and financial statement audits:
Rule 17f-1 would cover all registered broker-dealers.
Rule 17f-3 on free cash accounts would be rescinded.
The PCAOB-registered accountant requirement for adviser audits would be removed.
How Did the SEC Chairman React?
In his Paul Atkins crypto custody statement, SEC Chairman Paul Atkins said the proposal offers "a compliant pathway where none existed before." The Commission's X account (@SECGov) announced it that day.
Chairman Atkins also posted his statement on X (@SECPaulSAtkins).
SEC Crypto Custody Rule Comment Period: What Happens Next?
The SEC crypto custody comment period runs 60 days after Federal Register publication. This is a proposal, not a final rule, and this SEC Crypto News item will need an update once that date is set.
Item | Detail |
Release numbers | IA-7023; IC-36353 |
File number | S7-2026-35 |
60-day public comment period | Starts at Federal Register publication |
Expert Opinion
Analysts tracking SEC Crypto News suggest the framework could reduce legal uncertainty that kept advisers away from tokens lacking qualified custodians.
The agency itself says self-custody carries higher risk, so final conditions may tighten after public comments.
Disclaimer: This SEC Crypto News article is for informational purposes only and is not financial, legal, or investment advice. The proposal may change before any final rule. Readers should consult a licensed professional before acting.
