What would the SEC’s Oct. 1, 2026 proposal change about custody of crypto assets by registered investment advisers and regulated funds?
The SEC announced proposed rules and amendments on Oct. 1, 2026 concerning how certain firms can custody crypto assets under federal securities laws.
The main proposed change
The SEC says the proposal would update custody rules for crypto assets held by registered investment advisers and regulated funds.
The agency also says the proposal would remove barriers affecting crypto-related investment advice. For regulated funds, the SEC says the proposal could allow broader access to crypto asset-related strategies for clients.
Who the proposal is about
The proposal concerns:
- Registered investment advisers
- Regulated funds
- Registered investment companies
- Business development companies
The context does not provide detailed rule text, compliance deadlines, or final requirements. It describes the SEC action as a proposal, not a final rule.
Why the SEC framed it this way
SEC Chairman Paul S. Atkins described the crypto market as having grown from Bitcoin’s early period into a multi-trillion-dollar asset class. The confirmed point is that the SEC is connecting the proposal to how crypto custody fits under federal securities laws.
Because this is a proposed rulemaking, readers should check the SEC’s current materials for the latest status before relying on it as a final requirement.
Which types of firms are covered by the SEC crypto custody proposal?
The SEC’s Oct. 1, 2026 proposal is aimed at firms involved in custody of crypto assets under the federal securities laws.
Covered firm types named by the SEC
The context identifies these covered groups:
| Firm type | How it is described in the SEC context |
|---|---|
| Registered investment advisers | Advisers covered by the crypto custody proposal |
| Regulated funds | Funds included in the proposal |
| Registered investment companies | A type of regulated fund named in the context |
| Business development companies | Another type of regulated fund named in the context |
In short, the SEC crypto custody covered firms include registered investment advisers and regulated funds, including registered investment companies and business development companies.
What is not confirmed here
The available context does not list exemptions, thresholds, transition periods, or firm-by-firm obligations. It also does not provide the full proposed rule text.
What is confirmed is narrower: the SEC announced proposed rules and amendments concerning custody of crypto assets by the firm types listed above.
What firms should watch
Because the action is described as a proposal, not a final rule, affected firms should follow the SEC’s official updates for the current version and any later changes.
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