SEC Custody Rules Hinder RIA Access to DeFi: Self-Custody Path Excluded, Compliance Pain Points Emerge

According to ChainCatcher, Galaxy posted on X that many Registered Investment Advisors (RIAs) struggle to meet client demand for DeFi allocations while complying with SEC custody rules. The core issue: current rules require client assets to be held by qualified custodians, effectively excluding the self-custody path, making it nearly impossible for traditional financial accounts to participate in DeFi strategies. This regulatory hurdle is blocking institutional capital from entering the on-chain ecosystem.