U.S. SEC Proposes Rule Allowing Investment Advisers to Self-Custody Crypto Under Strict Conditions

On October 1, 2026, the U.S. SEC, led by Chair Paul Atkins, proposed amendments to the Investment Advisers Act and the Investment Company Act of 1940. The proposal allows registered investment advisers and regulated funds to self-custody crypto assets only when no qualified custodian is available for the specific asset. The rule requires rigorous quarterly documentation, cybersecurity expertise, and private key management controls. The proposal is subject to a 60-day public comment period before a final vote.