The SEC issued a crypto-custody proposal on October 1 addressing how investment advisers and funds can hold crypto assets under federal securities laws. The proposal would permit self-custody in some circumstances and allow state trust companies to serve as custodians, subject to the framework’s requirements.
Custody is a foundational risk control: it affects who controls keys, how assets are segregated and what happens if a service provider fails. The SEC’s document is a proposal, so its details and public-comment process—not a simplified headline—define what may change.
The operational questions
Investors and advisers will want to understand the proposed conditions for custody, recordkeeping, safeguarding and oversight. A wider set of eligible custodians could create more choice, but it would not make all custody arrangements equivalent or remove the need for due diligence.
What happens next
The proposal now enters a regulatory review and comment process. Firms should track the SEC’s official materials and avoid treating proposed permissions as available today. For traders, custody arrangements remain a core part of counterparty risk, even when market access is growing.
