Advisers and funds gain proposed custody options
The US Securities and Exchange Commission, the federal securities regulator, proposed a new crypto-asset custody framework for registered investment advisers and regulated funds on 1 October. The plan would permit advisers and funds to hold crypto assets themselves in certain circumstances.[1], [2]
State trust companies could also serve as custodians for client and fund crypto assets. The fund category covers registered investment companies and business development companies. The amendments sit under the Investment Advisers Act of 1940 and the Investment Company Act, also passed that year.[1]