SEC Proposes Tailored Crypto Custody Framework for Investment Advisers and Regulated Funds

The U.S. Securities and Exchange Commission unveiled a proposed rule modernizing crypto custody frameworks for registered investment advisers and regulated funds. Led by Chairman Paul Atkins, the proposal updates rules under the Investment Advisers Act of 1940 and the Investment Company Act of 1940, allowing state-chartered trust companies as qualified custodians and permitting conditional self-custody. The proposal is open for a 60-day public comment period and coincides with the departure of Commissioner Hester Peirce. Following the announcement, Bitcoin climbed 1.5% to $84.8K and Ethereum rose 0.7% to $2.70K.