The SEC has proposed new rules that would make it easier for investment advisers and regulated funds to hold crypto on behalf of clients. The move comes after the Clarity Act, a broader crypto market structure bill, stalled in the Senate, pushing regulators to write rules asset by asset instead.
The U.S. Securities and Exchange Commission has proposed new rules that would let investment advisers, investment companies and business development companies custody crypto assets under a dedicated federal framework. The proposal, announced Thursday, targets custody requirements the SEC says have not kept pace with the growth of digital assets.
Self-custody and state trust companies get a path
Under the proposed rules, crypto assets could be held in self-custody under "certain circumstances," while state trust companies could also serve as custodians for clients and regulated funds. The changes could also give regulated funds more room to offer investors crypto-related investment strategies, the SEC said.
SEC Chairman Paul Atkins said existing regulations had failed to keep pace with the expansion of digital assets into a multi-trillion-dollar market. According to the SEC: Atkins said the proposal would provide "a clear regulatory framework for the custody of crypto assets". The proposal will be open for public comment for 60 days after publication in the Federal Register.
Regulators fill the gap left by a stalled bill
The proposal comes as regulators push ahead with building a crypto regulation rulebook under their existing authority after the Clarity Act stalled in the Senate in September. Jeff Ko, chief analyst at blockchain infrastructure provider ViaBTC, said the SEC is using the authority it already has to solve individual bottlenecks one by one — issuance, tokenization, trading exemptions and now custody. He added the changes could increase competition among crypto custodians, potentially lowering the cost and complexity of investing in digital assets, noting that institutional custody has historically been concentrated among a small number of providers.
Bitcoin rebounds as momentum returns
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, as improving risk appetite has helped revive demand for digital assets. The recovery follows a prolonged downturn from late 2025 into the first half of 2026.
Source: SEC
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