SEC Proposes New Custody Rules for Crypto Assets Held by Advisers and Funds

The U.S. Securities and Exchange Commission (SEC) has formally proposed new custody rules for crypto assets, specifically aimed at registered investment advisers (RIAs) and regulated funds. Announced on October 1, 2026, the proposal, titled “Adviser and Regulated Fund Custody Rules; Crypto Custody Rules,” seeks to modernize existing custody regulations and improve transparency in the management of digital assets.

According to the SEC, the proposed rules are designed to support crypto investment advice and ensure compliance with the Investment Advisers Act and the Investment Company Act. This initiative follows a previous safeguarding proposal from 2023, which was withdrawn in June 2025, paving the way for a revised approach. In September 2025, the SEC issued a no-action letter allowing select state-chartered trust companies to act as qualified custodians for crypto assets, which the new proposal aims to formalize.

The SEC’s Crypto Task Force is behind this effort, which has been under review by the Office of Management and Budget since late August 2026. The proposal is not final and will be open for public comments for 60 days once published in the Federal Register. This period will allow stakeholders to discuss critical aspects such as which trust companies qualify as custodians and the necessary safeguards for client assets.

For RIAs and regulated funds, this proposal could significantly reshape the custody landscape, providing clearer guidelines for those looking to offer crypto exposure to clients. The outcome of the comment period will be crucial in determining the final structure of the custody rules.