SEC Custody Rules Block RIAs from DeFi: Self-Custody Excluded

SEC Custody Rules Block RIAs from DeFi: Self-Custody Excluded

N
News Editor
2026-07-02 19:01:27
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 self-custody and preventing traditional financial accounts from directly engaging DeFi strategies.

Galaxy posted on X platform that many registered investment advisors (RIAs) face difficulties in meeting client demand for allocating funds to DeFi while complying with SEC custody rules. The key pain point: current regulations require client assets to be held by qualified custodians, effectively excluding self-custody paths, making it impossible for traditional financial accounts to directly participate in DeFi strategies. This regulatory gap leaves RIAs unable to serve clients seeking exposure to decentralized finance.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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