SEC Proposes Crypto Asset Custody Framework
On October 1, 2026, the SEC proposed a framework addressing custody of crypto assets under the Investment Advisers Act and Investment Company Act. Chair Paul Atkins described a proposed compliant pathway for advisers and funds and proposed modernizations of existing custody rules. This is a proposal, not an adopted rule.
PARADIGM INSIGHTS:
A proposal is a planning signal, not permission to change custody practices today. Advisers and funds should distinguish current obligations from proposed changes and map responsibility for safekeeping, control and recovery before changing their systems.
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