SEC · Bitcoin · Donald Trump · The Block
SEC proposes framework allowing investment advisers, funds to self-custody crypto
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The U.S. Securities and Exchange Commission on Thursday proposed a new regulatory framework for the custody of crypto assets by investment advisers and regulated funds.
Key facts
- Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure," SEC Chairman Paul
- The public comment period will remain open for 60 days
- The announcement comes as both the SEC and Commodity Futures Trading Commission have accelerated efforts to establish crypto regulations after the Clarity Act failed to pass the Senate
- The U.S. Securities and Exchange Commission on Thursday proposed a new regulatory framework for the custody of crypto assets by investment advisers and regulated funds
Summary
The U.S. "Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure," SEC Chairman Paul Atkins said in a release. The proposal would address a key gap for institutional investors, where qualified custodial infrastructure for some crypto assets may not yet exist. The proposal would also allow advisers to "self-custody" client and regulated fund crypto assets under limited circumstances, including when the adviser determines that no permitted custodian is available. "True self-custody is not the right choice for everyone, but many crypto owners prize being able to custody their own assets," Peirce said in a statement.