Crypto Custody

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SEC

2026-10-02 09:41:05

SEC proposes crypto custody rule to let advisers and funds hold client assets when no custodian is available

The U.S. Securities and Exchange Commission has proposed a new crypto custody framework that would let registered investment advisers and regulated funds hold client digital assets themselves if no permitted custodian is available. The proposal also would allow eligible state trust companies to safeguard those assets, widening the pool of firms that could serve in that role. Under the plan, advisers could rely on this option only after determining that no approved custodian can hold the asset, and they would need to revisit that conclusion every quarter. The SEC said advisers would also need documented expertise for each asset, two-person approval for any private-key transaction, separate wallet addresses for each client, outside accountant reports on internal controls, and quarterly account statements for clients. The 760-page release will be open for public comment for 60 days after publication in the Federal Register. SEC Chair Paul Atkins said the rule is aimed at closing a gap that has left advisers and funds uncertain about how to lawfully custody crypto assets that clients increasingly want. Commissioners Hester Peirce and Mark Uyeda separately backed parts of the effort, with Uyeda calling the SEC’s withdrawn 2023 custody proposal unworkable in practice.

SEC

2026-10-02 19:00:09

SEC proposes custody rule framework for advisers and funds holding crypto assets

The U.S. Securities and Exchange Commission has proposed a new rule aimed at creating a clearer custody framework for registered investment advisers and regulated funds that hold crypto assets. Under the proposal, digital assets could be held through state trust companies in certain cases, and self-custody arrangements would also be permitted if specific conditions are met. SEC Chair Paul S. Atkins said the current custody rules were largely built for traditional assets and do not fully address the needs of crypto asset custody. The agency said the proposal is meant to remove some of the regulatory barriers that currently affect advisers offering crypto-related investment advice, while also giving regulated funds more options for investment strategies tied to crypto assets. The proposal would also revise requirements related to financial statement audits and broker-dealer custody services. It is not a final rule, and the SEC will seek public comment for 60 days before making a final decision.

Anchorage Dig

2026-10-02 18:41:17

Anchorage Digital reportedly cuts 17% of staff as it expands stablecoin and institutional business

Anchorage Digital, the federally chartered U.S. digital asset bank that was valued at $4.2 billion earlier this year, has reportedly cut 17% of its workforce, according to The Information. The report, which cited people familiar with the matter, said CEO Nathan McCauley told employees about the reductions this week. Based on McCauley’s congressional testimony in February that Anchorage had about 400 employees globally, the reported reduction would equal roughly 68 jobs if headcount had stayed near that level. Cointelegraph said it contacted a public relations representative for Anchorage but did not receive an immediate response. The report placed the layoffs against a weak crypto market over the past year, noting that Bitcoin briefly rose above $87,000 on Friday but remained far below its $126,000 peak from last October. The cuts come even as Anchorage keeps adding to its institutional presence in the regulated U.S. crypto sector. The company received a national trust charter from the Office of the Comptroller of the Currency in 2021, has grown into a major crypto custodian, has moved into stablecoin issuance including Tether’s new U.S. stablecoin USAT, and earlier this year received a $100 million strategic investment from Tether.

Anchorage Dig

2026-10-02 18:50:55

Anchorage Digital cuts 17% of staff as crypto downturn stretches on

Anchorage Digital, the federally chartered digital asset bank in the U.S., has laid off 17% of its workforce, according to a Friday report from The Information citing people familiar with the matter. CEO Nathan McCauley told employees about the decision this week. Based on Anchorage’s previously reported global headcount of about 400 employees as of February, the reduction would affect roughly 68 roles. The company was valued at $4.2 billion earlier this year. The Information linked the layoffs to a year-long slump in the crypto market. Bitcoin briefly climbed back above $87,000 on Friday, though it remained well below its $126,000 peak from October last year. Even as it trims staff, Anchorage is still expanding its footprint in the regulated U.S. crypto sector. The company became the first crypto firm to receive a national trust charter from the Office of the Comptroller of the Currency in 2021 and has since grown into a major crypto custody provider. More recently, it moved into stablecoin issuance, including participation in Tether’s new U.S. stablecoin USAT, and earlier this year received a $100 million strategic investment from Tether.

SEC

2026-10-02 01:07:08

SEC proposes easing crypto custody rules for advisers and funds

The US Securities and Exchange Commission has proposed changes that could remove a key custody obstacle for investment advisers offering crypto exposure to clients. Under the plan, advisers would be allowed to self-custody client crypto when no eligible custodian is available for a specific asset, subject to conditions and ongoing review. The proposal also would permit state trust companies to act as crypto custodians if they meet defined standards. SEC Chair Paul Atkins said the agency’s rules have not kept pace with a market that has grown into a multi-trillion-dollar asset class. Commissioners Hester Peirce and Mark Uyeda also weighed in, with Peirce describing current uncertainty as a regulatory 「roller coaster」 and Uyeda saying adviser custody carries an 「inherent conflict of interest」 while fiduciary duties still apply. The package also includes changes to audit, recordkeeping and disclosure requirements, and the SEC will take public comments for 60 days after publication in the Federal Register. The proposal comes as the SEC and CFTC continue trying to clarify crypto regulation after the CLARITY Act failed to move forward in the Senate last month.

SEC

2026-10-02 03:14:16

SEC Proposes Crypto Custody Framework for Advisers and Funds, With Limited Self-Custody Option

The U.S. Securities and Exchange Commission on Oct. 1 proposed a new crypto asset custody rule aimed at registered investment advisers, regulated funds and business development companies, opening a clearer compliance route for handling digital assets. The proposal would, in limited circumstances, allow advisers and funds to self-custody crypto when no suitable qualified or permitted custodian is available. SEC data cited in the proposal show regulatory assets under management reported by investment advisers reached about $177 trillion in 2025, up 21% from a year earlier, putting the potential scope of the rule change squarely in one of the world’s largest asset-management markets. The proposal also would expand the pool of third-party crypto custodians by allowing eligible state-chartered trust companies to serve in that role. SEC Chair Paul Atkins said existing U.S. custody rules were built mainly around traditional securities markets and have not kept pace with digital assets. Commissioner Hester Peirce said the current system has left some advisers without clear rules and without workable custodians. The proposal remains at the draft stage and could still change after public comment.

SEC

2026-10-01 23:10:17

SEC proposes easing rules for investment companies holding crypto for clients

The U.S. Securities and Exchange Commission has proposed a rule change that would allow more investment companies to hold digital assets on behalf of clients, according to Bloomberg. The proposal is the agency’s latest move on crypto regulation and comes after a market structure bill backed by the crypto industry was blocked in the U.S. Senate last month. If adopted, the measure would remove some existing custody requirements tied to these holdings. The SEC plans to open a 60-day public comment period before drafting a final version based on the feedback it receives. Even then, the rule would not take effect automatically. It would still need formal approval through a vote by the commission before becoming effective.

SEC

2026-10-01 21:38:21

SEC unveils crypto custody proposal allowing self-custody under specific conditions

The U.S. Securities and Exchange Commission on Oct. 1 formally announced a new set of crypto asset custody rules and amendments aimed at registered investment advisers and regulated funds. The proposal is designed to replace older rules that the agency says no longer fit digital assets, while creating a clearer compliance path for advisers offering crypto-related guidance. One of the central changes is that self-custody would be permitted under specific conditions, rather than forcing a single centralized custody model. The proposal also adds state trust companies to the list of qualified custodians that may hold crypto assets for clients and funds. According to the SEC, the framework is grounded in amendments tied to the Investment Advisers Act of 1940 and the Investment Company Act of 1940, and applies to regulated funds including registered investment companies and business development companies. SEC Chair Atkins said crypto has grown into a multi-trillion-dollar asset class since Bitcoin launched in 2008, while many existing custody rules were written before the internet became widespread. Once the proposal is published in the Federal Register, it will enter a 60-day public comment period, after which the commission will vote on the final version and implementation timeline.