SEC Proposal Would Address How Investment Advisers and Funds Can Custody Crypto Assets Under the Federal Securities Laws

Why it matters

The SEC's proposal to establish a tailored custody framework for crypto assets under federal securities laws represents a significant regulatory development with potential to clarify compliance and risk management for investment advisers and funds, affecting market structure and credit risk in the crypto custody space. While it is a regulatory proposal rather than a finalized rule, its prospective impact on professional practices and regulatory standards warrants a monetary-policy signal level score.

Sources

• SEC

  SEC Proposal Would Address How Investment Advisers and Funds Can Custody Crypto Assets Under the Federal Securities Laws

  The Securities and Exchange Commission today proposed new rules and amendments to provide a tailored framework for the custody of crypto assets for registered investment advisers and regulated funds, i.e. registered investment companies and business…