SEC Proposes Rules to Let Funds and Advisers Hold Crypto
The SEC unveiled proposed rules that would lower barriers for investment advisers and regulated funds to custody crypto assets for clients.
The U.S. Securities and Exchange Commission moved Thursday to open the door wider for Wall Street to handle digital assets, releasing a proposed regulatory framework that would make it significantly easier for investment advisers and regulated funds to hold cryptocurrencies on behalf of their clients.
The proposal marks a notable shift in the regulator's posture toward crypto, an asset class it has historically scrutinized through aggressive enforcement rather than accommodative rulemaking. By establishing clearer custody standards, the SEC aims to bring more institutional players into the digital asset space under a supervised, compliance-driven structure.
Read more Jim Cramer Highlights Micron as Top Stock to Watch Thursday →
For investment advisers, the ability to custody client crypto holdings has long been clouded by legal ambiguity, limiting the products and services they could offer retail and institutional investors. Clearer rules could accelerate the integration of bitcoin, ether, and other digital assets into mainstream managed portfolios and fund structures.
Analysts have noted that regulatory clarity is one of the most frequently cited barriers to broader institutional crypto adoption, and an SEC-endorsed custody framework could reduce the legal and operational risk that has kept many traditional asset managers on the sidelines. The proposed rules would still need to pass through a public comment period before taking effect.
Continue reading at US Top News and Analysis
