🏛 The SEC has written down how funds may hold crypto
On October 1 the U.S. Securities and Exchange Commission put out for comment a custody framework for registered investment advisers and regulated funds. Today's requirements were drafted for paper assets, and for some coins a permitted custodian simply does not exist.
Under the proposal, state-chartered trust companies could act as custodians. In limited cases — when the adviser finds no permitted custodian for an asset — the adviser could hold client crypto itself.
One caveat matters. "Self-custody" here means the adviser becoming the custodian of client assets, not a private investor gaining new rights over their own keys. Peirce spelled that out separately.
The comment period runs 60 days after publication in the Federal Register. This is a proposal, not a rule in force.
#regulation
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🔗 My channels: Youtube • X • Site
On October 1 the U.S. Securities and Exchange Commission put out for comment a custody framework for registered investment advisers and regulated funds. Today's requirements were drafted for paper assets, and for some coins a permitted custodian simply does not exist.
True self-custody is not the right choice for everyone, but many crypto owners prize being able to custody their own assets
— Hester Peirce, SEC Commissioner
Under the proposal, state-chartered trust companies could act as custodians. In limited cases — when the adviser finds no permitted custodian for an asset — the adviser could hold client crypto itself.
One caveat matters. "Self-custody" here means the adviser becoming the custodian of client assets, not a private investor gaining new rights over their own keys. Peirce spelled that out separately.
The comment period runs 60 days after publication in the Federal Register. This is a proposal, not a rule in force.
#regulation
📈 Bybit — up to $30,000 in bonuses · affiliate link
🔗 My channels: Youtube • X • Site