The U.S. Securities and Exchange Commission is preparing a new rule under the 1940 Act that would allow investment advisers to directly hold Bitcoin and other digital assets when no qualified custodian is willing to do so, according to a post by Bitcoin News on X. The regulator said traditional custodians often refuse to custody these assets, leaving a compliance gap in the current custody framework. Once the proposal is published in the Federal Register, it will open a 60-day public comment period. The proposed change centers on how advisers can handle digital assets in cases where the existing custody structure does not offer a workable compliant option.
Bitcoin News said in a post on X that the U.S. Securities and Exchange Commission is preparing a new rule under the 1940 Act that would allow investment advisers to directly hold Bitcoin and other digital assets if no qualified custodian is willing to custody them.
The SEC said traditional custodians often refuse to hold such assets, which leaves a compliance gap in the current custody framework.
After the proposal is published in the Federal Register, a 60-day public comment period will begin.
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