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The U.S. Securities and Exchange Commission has introduced new regulations aimed at simplifying how investment advisers and regulated funds can manage cryptocurrencies for their clients. This move follows a halt in comprehensive crypto legislation in Congress, pushing regulators to establish guidelines for the digital asset space.
Announced on Thursday, the proposal aims to create a specialized framework for registered investment advisers, investment companies, and business development firms regarding the custody of crypto assets.
The goal of these changes is to modernize outdated custody standards and eliminate regulatory obstacles that have hindered advisers from providing crypto investment options, according to the SEC.
As per the new guidelines, crypto assets could potentially be kept in self-custody under specific conditions, and state trust companies may also be appointed as custodians for clients’ and regulated funds’ crypto assets.
This development could allow regulated funds to offer a broader range of investment strategies related to cryptocurrencies, as stated by the SEC.
Bitcoin price year-to-date
SEC Chairman Paul Atkins emphasized that the current regulations have not kept up with the rapid growth of digital assets, which now encompass a multi-trillion-dollar industry.
“The proposal we are introducing today aims to set a clear regulatory framework for cryptocurrency custody, allowing investment advisers and funds to operate in compliance where such pathways were previously lacking,” Atkins stated.
This initiative follows an effort to form a comprehensive crypto regulation framework after the Clarity Act, which sought to reshape the crypto market’s structure, failed to pass in the Senate last September.
This marks another significant step in the SEC’s larger strategy to reform U.S. regulations concerning digital assets under Atkins, and the proposal will be available for public feedback for 60 days once it is published in the Federal Register.
As broader crypto legislation stalls in Congress, regulators are leveraging their existing authority to tackle individual market concerns, explained Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.
“We are witnessing the SEC utilizing its existing powers to address bottlenecks step-by-step, covering areas such as issuance, tokenization, trading exemptions, and now custody,” he commented to CNBC via email.
The revised regulations could also spur competition among crypto custodians, potentially making investment in digital assets more affordable and less complex, he added, noting that institutional custody has been historically dominated by a limited number of providers.
This regulatory momentum coincides with a resurgence in crypto markets following a turbulent start to the year. Bitcoin has recovered more than 40% since its low point in July, as renewed risk appetite has spurred interest in digital assets.
The recovery comes after a prolonged decline from late 2025 through the first half of 2026.