SEC Proposes New Custody Rules for Crypto Assets

The US Securities and Exchange Commission has formally proposed new custody rules, filed as File No. S7-2026-35, targeting registered investment advisers and regulated funds. The proposal aims to modernize custody standards, improve transparency in reporting, and align with the Investment Advisers Act and the Investment Company Act. This initiative follows a 2025 no-action letter and interim guidance, building on efforts by the SEC’s Crypto Task Force. The public comment period will remain open for 60 days following publication in the Federal Register.