SEC Crypto News: Advisers Could Hold Client Keys, Comments Due Dec 7
SEC Crypto News: Advisers Could Hold Client Keys, Comments Due Dec 7
As of October 7, 2026, SEC crypto news today rules are back in focus after the proposal reached the Federal Register on October 6.
According to the proposal page, the release was issued on October 1 under File No. S7-2026-35.
BankXRP also covered this news in its tweet on X, calling it formal paperwork rather than a rumor.
What Are the SEC Crypto Custody Rules?
The existing SEC custody rule crypto managers must follow was written for traditional assets, and few traditional custodians have offered robust services for many tokens, per the notice.
In short, the SEC proposes new crypto rules for advisers and funds. The SEC crypto rules Federal Register October 2026 notice begins on page 63870 of Volume 91.
SEC Crypto Custody Rules Proposal Explained
Here are the SEC crypto custody proposal 234 pages key points, as BankXRP's post puts the length at pages 63870 to 64103:
Area | Proposed change |
Adviser self-custody | Allowed if no qualified custodian is available |
Joint approval | Two people must authorize each transaction |
State trust companies | Permitted custodians, with conditions |
Recordkeeping | Records may sit on a blockchain if readable on request |
Can Investment Advisers Self-Custody Crypto Assets?
Yes, but with limits. The SEC self-custody crypto route requires:
A written finding, at least quarterly, that no qualified custodian is available
Private keys secured by systems needing two approvers
A separate blockchain address for each client
An internal control report within six months, then yearly
Quarterly account statements for clients
Boards of regulated funds would also review the adviser's determination every quarter.
Can State Trust Companies Hold Crypto for Funds?
Yes. The state trust company crypto custody section would permit this if advisers or funds verify state authorization, written safeguarding policies, audited financials and internal control reports. Client tokens must also stay segregated from the firm's own.
Who Does the SEC Crypto Proposal Apply To?
It governs registered investment advisers and regulated funds rather than individual wallet holders, and it covers digital assets that are securities or similar investments. It also adds Form ADV and Form N-CEN questions on tokenized funds.
SEC Crypto Custody Rules: What Changes for Bitcoin Funds?
The notice names Bitcoin, Ether and Solana as native digital commodities. They generally fall outside the adviser rule for ordinary clients, but would count as securities and similar investments when self-custodied for a regulated fund.
Are SEC Crypto Custody Rules Final?
No, this is a proposal. The Crypto Task Force, formed in January 2025, gathered industry feedback, and SEC Chairman Paul Atkins later launched a modernization push, the notice states.
The latest SEC crypto news also shows trading were considered but not proposed.
When Will SEC Crypto Custody Rules Take Effect?
No effective date exists, because the agency has not adopted a final rule. SEC crypto news today also hinges on dates:
October 1: release issued
October 6: Federal Register publication
SEC crypto proposal comments due December 7, 2026
The crypto proposal comment deadline applies to submissions through the online comment form.
Expert View: What Could It Mean?
Analysts following SEC crypto regulation news may see a path for funds to hold more tokens that custodians do not yet support. The final text could change after comments. For SEC crypto news, that is the open question.
Disclaimer: This article is for information only and is not financial, legal, or investment advice. Digital assets are volatile, and you can lose money. Verify details with official sources before making any decision.
