SEC proposes crypto custody rules for advisers and regulated funds

The Securities and Exchange Commission proposed rules on Thursday that would create a tailored crypto asset custody framework for registered investment advisers and regulated funds. The proposal would permit self-custody under certain circumstances and allow state trust companies to hold client and fund crypto assets. The changes would also update requirements concerning adviser financial statement audits and broker-dealer custody services for funds. Covered funds include registered investment companies and business development companies. The SEC says the framework would remove barriers to crypto investment advice and broaden available investment strategies. Public comments will remain open for 60 days after publication in the Federal Register.