SEC Crypto Custody Proposal Opens a Self-Custody Path—With a High Bar for Smaller Advisers

By Isaac • October 2, 2026 11:19 pm •

The Securities and Exchange Commission has proposed a dedicated custody framework for crypto assets held by registered investment advisers and regulated funds.

The headline change is significant: advisers could use state trust companies as custodians, and in limited cases they could hold client crypto through a form of self-custody.

But the proposal is not a free pass to keep private keys in a desk drawer. The self-custody path comes with technical, governance and review obligations that may be much easier for a large institution to absorb than a small adviser.

TODAY 🚨: The Commission proposed new rules and amendments to provide a tailored framework for the custody of crypto assets for registered investment advisers and