A self-custody proposal would put bankruptcy protection at the center of how registered investment advisers handle client crypto, according to a post on X by a Fox Business crypto reporter. The proposal would require RIAs and their clients to sign a written agreement stating that crypto assets held in self-custody by the adviser would be treated as financial assets under Article 8 of the Uniform Commercial Code. The reported aim is to reduce the risk that clients could lose those crypto assets if an adviser becomes insolvent. The update was cited by Odaily in a brief report and did not include further details on the proposal’s timeline or scope.
A self-custody proposal would focus on bankruptcy protection, according to a post on X by a Fox Business crypto reporter cited by Odaily.
The proposal would require registered investment advisers, or RIAs, to sign a written agreement with clients stating that crypto assets self-custodied by the adviser would be treated as financial assets under Article 8 of the Uniform Commercial Code.
The stated purpose, as described in the post, is to reduce the risk of clients losing crypto assets if an adviser becomes insolvent.
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