SEC Proposes Amendments to Crypto Asset Custody Framework for Investment Advisers and Regulated Funds

The SEC has released a proposed rule that would amend the crypto asset custody framework for regulated investment companies and registered investment advisers under the Investment Company Act of 1940 and Investment Advisers Act of 1940, respectively. The proposed rule is intended to (1) “modernize custody rules and expand investor choice by removing regulatory barriers that inhibit the adviser’s ability to provide crypto-related investment advice” and (2) “allow regulated funds to offer clients access to a wider range of crypto asset-related investment strategies.”

For more information, see the press release and fact sheet — as well as the statements by SEC Chairman Paul Atkins and SEC Commissioners Hester Peirce and Mark Uyeda — on the SEC’s Web site.