News · October 02, 2026, 06:01 UTC · Based on reporting by CNBC, Yahoo Finance; the original documents or statements were not available to us at the time of publication.
The U.S. Securities and Exchange Commission proposed new rules on Thursday that would make it easier for investment advisers and regulated funds to hold cryptocurrencies on behalf of clients, CNBC reported. The proposal would create a tailored custody framework for registered investment advisers, investment companies and business development companies.
The SEC said the changes are intended to modernize decades-old custody requirements and remove barriers that have limited advisers’ ability to offer crypto-related investments. brokertable.net has not reviewed the original proposal document; the details below are based on reporting by CNBC and Yahoo Finance.
What happened
The proposal, announced Thursday stateside, would allow crypto assets to be held in self-custody under certain circumstances, according to CNBC. State trust companies could also serve as custodians for crypto assets belonging to clients and regulated funds.
SEC Chairman Paul Atkins said existing regulations had failed to keep pace with the rapid expansion of digital assets, which he described as a multi-trillion-dollar market. “Today’s 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,” Atkins said, according to CNBC.
The framework targets a practical problem for institutional investors: qualified custodial infrastructure for some crypto assets does not yet exist, Yahoo Finance reported. The proposal would give asset managers and hedge funds a path to hold bitcoin and other crypto directly, rather than exclusively through an ETF or other intermediary.
SEC Commissioner Hester Peirce clarified that self-custody under the proposal refers to advisers acting as custodians on behalf of client assets, not investors directly holding their own crypto, according to Yahoo Finance. Peirce said many crypto owners prize being able to custody their own assets and argued regulators should protect that choice rather than force investors into third-party custody.
The proposal follows the failure of the Clarity Act, a sweeping crypto market structure bill, to pass the Senate in September, CNBC reported. The SEC’s proposal will be open for public comment for 60 days after it is published in the Federal Register.
Analysis: Why it matters for investors
If adopted, the framework could give regulated funds greater scope to offer crypto-related investment strategies, according to the SEC. It could also increase competition among crypto custodians, potentially lowering the cost and complexity of investing in digital assets, Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC, told CNBC via email.
Ko noted that institutional custody has historically been concentrated among a relatively small number of providers. The proposal may therefore be relevant to investors who have faced limited options for gaining direct crypto exposure through regulated vehicles.
The regulatory push comes as crypto markets show signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, CNBC reported, as improving risk appetite helped revive demand for digital assets. The recovery follows a prolonged downturn from late 2025 into the first half of 2026.
With broader crypto legislation stalling in Congress, regulators are exerting their existing powers to address individual parts of the market, Ko said. “What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told CNBC.
Who is affected
The proposal would affect registered investment advisers, investment companies and business development companies that hold or seek to hold crypto assets for clients. It would also affect state trust companies that could serve as custodians under the framework.
Asset managers and hedge funds could gain a path to hold bitcoin and other crypto directly, according to Yahoo Finance. Crypto custodians could face increased competition, Ko said, which may affect pricing and service offerings in the institutional custody market.
SEC Commissioner Peirce’s clarification indicates the proposal does not extend to individual investors holding their own crypto directly. The changes could also give regulated funds greater scope to offer crypto-related investment strategies, the SEC said.
What is still uncertain
The full text of the proposal was not available to brokertable.net, and the sources do not say when the rules might be finalized or whether they will be adopted as proposed. The 60-day public comment period begins after publication in the Federal Register, but the sources do not specify the publication date.
It is also unclear how the SEC would define the “certain circumstances” under which self-custody would be permitted, beyond the condition that an adviser determines no permitted custodian is available, as Yahoo Finance reported. The sources do not detail how state trust companies would be evaluated or approved as custodians.
Conclusion: What to watch next
Market participants will watch for the proposal’s publication in the Federal Register, which triggers the 60-day comment period. The scope of public feedback and any revisions by the SEC could shape the final framework.
Atkins told reporters he expects to keep helping cement the U.S. as the crypto capital of the world, according to Yahoo Finance. The SEC’s broader effort to rewrite the U.S. regulatory framework for digital assets under Atkins is likely to continue, with custody now added to a list that includes issuance, tokenization and trading exemptions, Ko said.
NovaDius President Nate Geraci wrote on X that some politicians are going to wish they had passed the Clarity Act, Yahoo Finance reported. Whether Congress revisits broader crypto legislation remains to be seen.
Sources
- CNBC: U.S. market regulator seeks to make it easier for funds, advisers to hold crypto (published 2026-10-02)
- Yahoo Finance: SEC Proposes New Rules Allowing Advisers to Self-Custody Client Crypto (published 2026-10-01)
Sources accessed on October 02, 2026. Figures as reported by the sources above.
Frequently Asked Questions
What did the SEC propose on October 1, 2026?
The SEC proposed a tailored framework for how registered investment advisers, investment companies and business development companies hold custody of crypto assets. The proposal would allow self-custody under certain circumstances and permit state trust companies to serve as custodians.
Who would be affected by the proposed custody rules?
Registered investment advisers, investment companies, business development companies and state trust companies would be affected. Asset managers and hedge funds could gain a path to hold bitcoin and other crypto directly rather than through an ETF or intermediary.
What did SEC Chairman Paul Atkins say about the proposal?
Atkins said existing regulations had failed to keep pace with the rapid expansion of digital assets. He said the proposal would provide a clear regulatory framework for crypto custody, giving advisers and funds a compliant pathway where none existed before.
How does the proposal address self-custody?
Self-custody would apply only in limited circumstances, including when an adviser determines no permitted custodian is available. SEC Commissioner Hester Peirce clarified that the term refers to advisers acting as custodians on behalf of client assets, not investors directly holding their own crypto.
What happens next with the SEC proposal?
The proposal will be open for public comment for 60 days after it is published in the Federal Register. The sources do not specify the publication date or when the rules might be finalized.
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