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- The U.S. Securities and Exchange Commission is preparing new crypto custody rules for investment advisers, funds and broker-dealers.
- SEC Chair Paul Atkins asked staff on Sept. 14 to develop a proposal allowing self-custody or state-chartered trust companies under certain conditions.
- No final rules have been adopted, and firms currently rely on existing staff statements and no-action relief.
The U.S. Securities and Exchange Commission is preparing new crypto custody rules for investment advisers, funds and broker-dealers. Crypto Task Force Chief Counsel Taylor Lindman said the agency is examining how digital-asset custody can fit within existing securities-market structures. No final custody rules have been adopted.
SEC Prepares Adviser and Fund Proposal
The SEC’s regulatory agenda includes proposed changes to custody rules under the Investment Advisers Act and Investment Company Act. The amendments would address how advisers and regulated funds can hold crypto assets.
SEC Chair Paul Atkins said on Sept. 14 that he had asked staff to develop a proposal allowing advisers, under certain conditions, to self-custody crypto assets or use state-chartered trust companies. Any proposal would still need to proceed through the SEC’s public rulemaking process before becoming binding.
Broker-Dealer Rules Remain Separate
Lindman also discussed how registered broker-dealers could custody crypto assets that are not securities without obtaining separate registration solely for those holdings.
“Understand how you can carry a non-security crypto asset within a broker-dealer without needing some special registration.”
SEC Staff Has Issued Interim Guidance
The SEC’s Division of Trading and Markets issued a staff statement in December 2025 addressing custody of crypto asset securities under Rule 15c3-3(b)(1). The statement describes conditions under which staff would not object to a broker-dealer treating itself as having physical possession of customer crypto securities.
Those conditions include maintaining transfer capability and assessing the distributed-ledger network supporting an asset. The statement reflects staff views and does not replace a Commission rule.
State Trust Companies Have Limited Custody Path
SEC staff also issued no-action relief in September 2025, allowing registered advisers and regulated funds, under specified conditions, to treat qualifying state-chartered trust companies as permissible custodians for crypto assets and related cash.
The relief applies only under the conditions described by staff and does not create a generally applicable new category of qualified custodian. Until the SEC adopts new rules, firms continue to rely on existing staff statements, FAQs and no-action relief applicable to their specific custody arrangements.
