The U.S. Securities and Exchange Commission has proposed a new regulatory framework for crypto custody. The proposal would amend custody requirements under the Investment Advisers Act of 1940 and the Investment Company Act of 1940, making it easier for registered investment advisers and regulated funds to gain exposure to crypto assets. Self-custody would be permitted only under conditions, specifically when no permitted custodian is available for a particular crypto asset, with reassessment required at least quarterly. State-chartered trust companies would also receive a pathway to become crypto custodians. The proposal, which will undergo a 60-day public comment period, aims to replace regulatory uncertainty with a defined compliance framework for investment advisers and funds.
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