SEC Chair: Proposes Allowing Investment Advisers to Self-Custody Crypto Assets Under Certain Conditions

Odaily reports: U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins stated that he has directed staff to draft a proposal that would allow investment advisers to directly custody crypto assets for clients and regulated funds under certain conditions, and is considering permitting state trust companies to serve as custodians.

Atkins noted that qualified third-party custodians do not yet exist for certain crypto assets. The custody proposal is one component of the SEC's crypto regulatory framework, following the SEC's amended crypto asset custody rules that entered White House review in August.

The framework's other two components include the Crypto Asset Regulations proposed on August 18 and the transfer agent rule modernization plan, which respectively address crypto asset issuance and transfer. Atkins also urged Congress to advance the CLARITY Act, but the bill failed to advance in a Senate procedural vote on September 15 with 49 votes in favor and 50 against. (Bitcoin.com News)