SEC Proposes Framework for Investment Advisers and Funds to Custody Crypto Assets
The SEC proposed new rules on Oct. 1, 2026, to establish a tailored crypto asset custody framework for registered investment advisers and regulated funds.
Senior Markets Correspondent
WASHINGTON — The Securities and Exchange Commission on Oct. 1, 2026, proposed new rules and amendments to establish a tailored framework for how registered investment advisers and regulated funds custody crypto assets under federal securities laws. The regulatory action, detailed in an SEC press release published Oct. 1, 2026, addresses registered investment companies and business development companies holding digital assets.
Strategic Context
The proposed framework targets the operational and compliance mechanics required for institutional managers seeking to hold digital assets within regulated fund structures. Under the federal securities laws, registered investment advisers must navigate specific requirements for client assets, prompting the commission to introduce rules specifically tailored to the custody of crypto assets.
Forward Outlook
Chief financial officers, compliance officers, and legal counsel at registered investment advisers and regulated funds must review the text of the proposed rules and amendments. Market participants need to track the SEC rulemaking docket for public comment periods and further administrative guidance regarding digital asset custody implementation.
Elena Vasquez
Senior Markets Correspondent
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