SEC Proposes Crypto Custody Changes for Advisers and Funds

The US Securities and Exchange Commission proposed a crypto-asset custody framework on October 1 for registered investment advisers and regulated funds. The announcement concerns how assets may be held—not an approval of any cryptocurrency or a rule that has already taken effect.

What would change?

According to the SEC, the proposal would permit self-custody in certain circumstances and allow state trust companies to act as custodians for client and regulated fund crypto assets. Regulated funds here include registered investment companies and business development companies.

The package also addresses financial-statement audit requirements for advisers and broker-dealer custodial services for funds. The announcement does not provide every condition, so it should not be read as blanket permission to move assets into a self-managed wallet.

Why custody matters

CapKet explanation: Custody is about who holds or controls assets and the arrangements used to safeguard them. It is a different question from whether an asset is a good investment. A change in the custody framework cannot by itself establish a token’s value or remove operational risks.

For a reader assessing a fund, useful questions include who controls access, how holdings are recorded and what happens if access is lost. These are due-diligence questions, not assertions that the proposal resolves each issue.

The next step is consultation

The SEC says the comment window runs for 60 days after the proposing release appears in the Federal Register. CapKet has not verified that publication date and therefore is not assigning a calendar deadline. Any final requirements and effective date would need separate confirmation.

For a separate example of crypto infrastructure in actual use, see our Fiserv stablecoin-platform report. That company launch is not evidence that this SEC proposal has become law.

Primary source: SEC release 2026-100, October 1, 2026, checked October 2 at approximately 02:32 IST. No market-price response, final rule or investment return is established by this report.