# SEC Proposes New Crypto Custody Framework for Advisers and Funds

*Author: William M. Peaster*
*Published: Oct 2, 2026*
*Source: https://www.bankless.com/read/news/sec-proposes-new-crypto-custody-framework-for-advisers-and-funds*

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The SEC on Thursday [proposed rules](https://www.sec.gov/newsroom/press-releases/2026-100-sec-proposal-would-address-how-investment-advisers-funds-can-custody-crypto-assets-under-federal) for how registered investment advisers (RIAs) and regulated funds can hold crypto. The goal is a compliant route for money managers who want crypto exposure, since today's custody rules weren't built for it. 

# **What’s the Scoop?**

- **New custodians:** State-chartered trust companies could hold crypto for adviser clients and funds. That widens a field where qualified options have been thin for some assets. 

- **Limited self-custody:** Advisers could hold client crypto themselves in certain cases, like when no approved custodian is available. As Commissioner Hester Peirce [pointed out](https://www.sec.gov/newsroom/speeches-statements/peirce-statement-proposed-amendments-custody-rules-100126), this means the adviser acting as custodian, not individuals holding their own keys. 

- **180 from 2023:** Gensler's SEC once proposed custody changes that critics said would have boxed advisers out of crypto by limiting them to a short list of qualified custodians. a16z called that effort "illegal, infeasible, and dangerous," and it was later withdrawn. 

- **More to come:** Comments stay open for 60 days once the proposal is published in the Federal Register, and Chair Paul Atkins says more proposals are on the way. It follows the SEC's [innovation exemption](https://www.bankless.com/read/the-sec-just-opened-a-legal-lane-for-tokenized-stocks) and the CFTC's rulemaking filing last month, as regulators push ahead after the Clarity Act failed in the Senate. 

- **Big picture:** With Clarity stalled, the crypto rulebook is now being written one agency proposal at a time. That's faster, but it's also less durable, since a future SEC can rewrite rules far more easily than Congress can repeal a law.