SEC Releases Proposed Crypto Custody Framework Covering Investment Advisers and Self-Custody Options
The U.S. Securities and Exchange Commission has issued a proposed rule outlining how investment advisers and funds may custody digital assets, including provisions for self-custody and the use of state trust companies. The proposal marks a notable regulatory step as the SEC's Crypto Task Force transitions leadership. Multiple independent sources confirm the development.
The SEC has released a formal proposed rule addressing crypto custody arrangements for investment advisers and registered funds. The proposal opens the door to self-custody in certain circumstances and permits state-chartered trust companies to serve as qualifying custodians for digital assets.
The rulemaking is part of a broader push by the SEC to establish clearer regulatory guardrails for digital assets under the current administration. It follows a period of increased activity from the agency's Crypto Task Force, which was established to develop a more structured approach to crypto oversight.
The proposal arrives as Commissioner Hester Peirce, who served as the inaugural head of the SEC's Crypto Task Force, is departing the agency this week. Her tenure was closely associated with efforts to move the SEC toward more defined digital asset policy.
For XRP and the broader digital asset industry, the proposed custody framework carries potential significance. Clearer custody rules could reduce compliance uncertainty for institutional participants looking to hold or manage XRP and other digital assets on behalf of clients.
The proposal is subject to a public comment period before any final rule is adopted, meaning the current text could be revised. Market participants and legal observers are expected to scrutinize its definitions and scope closely.
Key facts
- •SEC issued a proposed rule on crypto custody for investment advisers and funds
- •Proposal allows self-custody of crypto in certain cases
- •State-chartered trust companies would qualify as custodians under the proposal
- •The rule is part of the SEC Crypto Task Force's ongoing regulatory agenda
- •Commissioner Hester Peirce, inaugural Crypto Task Force chief, is exiting the SEC this week
- •Proposal is open to public comment before any final adoption