SEC Proposes Amending 1940 Act Rules to Allow Investment Advisers to Directly Hold Bitcoin Without a Qualified Custodian

Odaily Reports: Bitcoin News posted on X that the SEC plans to propose new rules under the 1940 Act, allowing investment advisers to directly hold bitcoin and other digital assets when no qualified custodian is willing to custody such assets. The SEC stated that traditional custodians typically refuse to custody such assets, creating a compliance gap in the existing custody framework. Once the proposal is published in the Federal Register, a 60-day public comment period will begin.