The U.S. 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.
The SEC’s new approach would clarify what kinds of companies can properly hold crypto assets and how investment advisers and regulated funds need to keep records and make federal disclosures. It also offers new clarifications of industry practices and auditing requirements.
Atkins said that existing custody rules “were designed to protect the assets of advisory clients and regulated funds from loss, theft, misuse, and misappropriation,” but they only consider “the custody and safekeeping only of traditional assets — an untenable situation in the 21st century.”
The newly proposed rule, open for a 60-day public comment period, would also allow for self-custody of crypto assets “under certain circumstances” and permit the use of state-chartered trusts as custodians.
The latest move to advance a pro-crypto U.S. securities agenda comes the day before the exit of Commissioner Hester Peirce, who has led the agency’s Crypto Task Force since its inception. She leaves on Friday and will be a professor in Virginia, leaving the agency with just two .
With the movement on the custody issue, the SEC has now put a checkmark in every major topic on the crypto agenda originally set out by Atkins.
Know when yourcoins move
Alerts, real-time prices, and market news — all in one app 
4.8 based on 40K reviews in the App Store and Google Play 
