SEC Crypto Custody Plan Opens a Door That Smaller Advisers May Struggle to Afford

By Isaac • October 3, 2026 11:39 pm •

The SEC wants to give investment advisers a path to hold certain crypto assets when no qualified custodian will take them. The catch is that the path may be much easier for a large firm to afford than a small one.

The proposal creates a tailored custody framework for registered investment advisers and regulated funds. In limited circumstances, an adviser could hold the key material for a covered client asset after determining that no eligible qualified custodian is available.

That is potentially meaningful for investors. It could allow an adviser to offer exposure to an asset that otherwise sits outside conventional custody channels.

It also moves safeguarding responsibility directly onto the adviser, and the SEC’s own