SEC Proposes New Crypto Custody Rules for Advisers, Funds
MissedBlock Desk · · 2 min read
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SEC Proposes New Custody Rules for Crypto Assets
The U.S. Securities and Exchange Commission (SEC) has formally put forth new custody rules specifically for crypto assets, targeting registered investment advisers and regulated funds.
The proposal, unveiled on October 1, 2026, is officially titled “Adviser and Regulated Fund Custody Rules; Crypto Custody Rules” and is filed under File No. S7-2026-35. According to the Commission, these rules are intended to update existing custody regulations and provide support for investment advice related to crypto assets offered by registered advisers and funds.
The initiative aims to modernize current custody standards and enhance transparency in how firms manage reporting and recordkeeping. This framework is designed to assist firms in meeting their ongoing obligations under two key pieces of legislation: the Investment Advisers Act and the Investment Company Act.
This latest proposal follows a previous safeguarding effort by the SEC in 2023, which was withdrawn in June 2025. That withdrawal paved the way for a revised approach. In September 2025, the SEC issued a no-action letter that allowed certain state-chartered trust companies to act as qualified custodians for crypto assets. Interim guidance released in 2025 helped bridge the regulatory gap, and the new proposal builds upon this guidance, potentially transforming temporary accommodations into a formal regulatory framework.
The SEC’s Crypto Task Force is spearheading this initiative, driving the agency’s broader efforts to establish clearer regulations for digital assets. Prior to its October release, the proposal underwent review by the White House, having been with the Office of Management and Budget since approximately August 25, 2026. The complete document is available on SEC.gov as a PDF file.
It is important to note that this proposal is not yet final. The SEC will accept public comments for a period of 60 days following its publication in the Federal Register. The September 2025 no-action letter already provided a pathway for select state-chartered trust companies to serve as qualified custodians, and the final rule could solidify or alter their standing. The earlier 2023 proposal serves as a reminder that such proposals represent a starting point for discussion and are not a guarantee of final regulations.