SEC Proposes Crypto Custody Framework for Advisers and Funds

What changed

The Securities and Exchange Commission proposed rules and amendments on October 1, 2026, creating a tailored framework for how registered investment advisers and regulated funds custody crypto assets under federal securities laws. The proposal covers registered investment companies and the crypto-asset custodians they use, but it is not a final rule.

Why it matters

The practical issue is control: where crypto assets are held, and what arrangements advisers and funds must use to safeguard them. That puts custody infrastructure, rather than crypto prices or ownership, at the center of the SEC’s move.

For investment advisers and regulated funds, the proposal could define how crypto assets fit inside existing securities-law responsibilities. Custodians would also face a framework designed specifically for these assets. The final requirements, scope and effective date remain unsettled, so the next meaningful step is the SEC’s decision on what survives into a final rule.