SEC proposes custody rules for crypto held by investment advisers and funds

Oct. 1, 2026 — The SEC has proposed new rules and amendments setting out how registered investment advisers and investment funds can hold crypto assets for clients under its custody requirements. The agency says advisers and funds have raised questions about how to hold crypto in compliance with the current rules, and that the proposal would also remove outdated provisions.

The proposal follows the SEC's withdrawal of a broader 2023 plan that would have extended the adviser custody rule to all client assets. Since 2025 the agency has opened other paths: a September 2025 staff no-action letter allowed state-chartered trust companies to serve as crypto custodians for advisers. The SEC sent the proposal to the White House budget office for review on Aug. 25.

Chairman Paul Atkins issued a statement the same day naming the proposed Regulation Crypto Assets as a prior step. The comment deadline runs from Federal Register publication.

The wall: The comment deadline will be set when the proposal is published in the Federal Register.

Tier: Reported (based on the SEC's announcement and trade coverage)

Corrections

• Corrected Oct. 3, 2026: the notes on what this story is based on and what remains unknown were revised for clarity. The facts are unchanged.

Sources

• SEC release
• Ledger Insights (2025 no-action letter)
• The Defiant (2023 proposal withdrawn; agenda)
• Cryptonomist (OIRA submission Aug. 25)
• SEC, Chairman Paul S. Atkins, statement on the custody proposal, Oct. 1, 2026

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