The United States Securities and Exchange Commission has introduced updated rules to modify how regulated funds and investment advisers manage assets, placing a major emphasis on digital currencies.
In a statement released on Thursday, the financial regulator announced it would permit advisers, as well as funds operating through their advisers, to retain client cryptocurrencies directly, but only if an approved custodian remains unavailable.
Financial authorities are moving forward with regulatory measures for the cryptocurrency sector despite members of Congress rejecting the Clarity Act during the previous month.
JUST IN: 🇺🇸 SEC Chairman Paul Atkins releases a statement to address the custody of crypto assets. 👀
“Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class” 🚀 pic.twitter.com/SbLR2HAeW1
— Bitcoin Magazine (@BitcoinMagazine) October 1, 2026
The eagerly anticipated bill—which establishes guidelines for differentiating between digital currencies categorized as commodities, securities, or payment stablecoins—failed to secure the necessary votes to move forward.
“Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure. Unfortunately, our rules and regulations have not kept pace,” SEC Chairman Paul S. Atkins stated in an official release.
“To that end, today’s 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.”
The agency noted within its draft regulations that ledgers maintained on a blockchain might fulfill compliance requirements, provided certain conditions are met.
The commission also mentioned it would permit state trust companies to serve as custodians for the digital tokens of clients and regulated investment funds, subject to specific criteria.
Lawmakers stalled the Clarity Act via a procedural vote last month. Prior to that vote, regulators indicated they would initiate cryptocurrency oversight regardless of whether the cornerstone legislation passed.
Before the vote took place, the SEC submitted a proposal to the White House designed to “clarify the framework for the custody of crypto assets” concerning companies and investment advisors.
The pro-cryptocurrency official Atkins affirmed he would continue striving to establish the United States as the global cryptocurrency hub, regardless of whether the landmark bill ultimately succeeds.
Originally published at https://bitcoinmagazine.com/news/sec-proposes-crypto-custody-rules.
