SEC · CryptoSlate
New SEC crypto rules threaten small advisers, but big companies win
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
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The US Securities and Exchange Commission’s proposed crypto custody fallback could broaden investment choices while making them easier for larger advisers to offer.
Key facts
- Table 8 combines those amounts and separately lists an initial internal compliance cost of $173,499, all in 2026 dollars
- The internal estimate assumes 300 initial hours and 100 recurring annual hours at $578.33 an hour
- The agency assumes approximately 823 advisers, or 5% of 16,442 registered advisers, would use self-custody for that burden calculation
- The accountant figure comes from an inflation-adjusted prior estimate in the Paperwork Reduction Act analysis, rounded to the nearest $1,000, reflecting the agency’s historical cost model
Summary
01 The SEC proposes adviser custody for covered crypto assets when no qualified custodian will maintain them. 02 Its $433,833 annual adviser cost subtotal excludes significant technology spending, leaving implementation costs and potential client fees uncertain. 03 Larger advisers may spread safeguarding costs more easily, while existing custodians and infrastructure could reduce the advantage. The agency’s economic analysis says the expense of safeguarding assets and arranging independent oversight may lead smaller firms to decline to offer the service.