SEC · CoinDesk
The SEC recently published its long-anticipated "Innovation Exemption" for tokenizing securities
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UPDATE (Oct. 1, 2026, 20:55 UTC): Adds additional detail from release and links.
Key facts
- UPDATE (Oct. 1, 2026, 20:55 UTC): Adds additional detail from release and links
- According to the 760-page proposal, the SEC will allow for self-custody by advisers seeking to hold their clients' funds
- The newly proposed rule, open for a 60-day public comment period, would also permit the use of state-chartered trusts as custodians
- The SEC recently published its long-anticipated "Innovation Exemption" for tokenizing securities, laying out pathways for companies to put traditional securities products on a blockchain
Summary
The U.S. Securities and Exchange Commission proposed its crypto custody rule on Thursday, adding another major piece to the agency’s digital asset agenda. The custody rule would provide clarity for what firms can hold the crypto asset of investment firms’ clients, but it also seeks to open a self-custody ability for advisers to hold their clients’ funds themselves in limited circumstances. Thursday’s publication is the latest push by the SEC to publish crypto rules, following last month’s Innovation Exemption and August’s Reg Crypto releases. Securities and Exchange Commission is aiming to clarify how investment firms can handle and keep customer crypto assets in a new rule proposed Thursday. The proposal "would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before, and replacing the grey of uncertainty created by custody rules crafted for a bygone era,” said SEC Chairman Paul Atkins in a statement.