Main crypto news today is that the U.S. Securities and Exchange Commission has proposed a new regulatory framework for how registered investment advisers and regulated funds can custody Bitcoin and other crypto assets.
The proposal, announced on October 1, is designed to replace years of uncertainty around how traditional financial firms can legally hold assets such as Bitcoin and other cryptocurrencies for clients. SEC Chair Paul Atkins said existing custody rules were written for a different era and have not kept pace with the growth of crypto into a multi-trillion-dollar market. SEC
Under the proposal, registered investment advisers and regulated funds would have a more defined route for holding crypto assets while remaining compliant with federal securities laws.
The SEC said the changes are intended to modernize custody requirements, remove regulatory barriers, and give regulated funds access to a broader range of crypto-related investment strategies.
The framework would also allow more flexibility around the use of qualified custodians, including certain state trust companies, while permitting limited forms of self-custody under specific conditions.
Atkins was direct in his criticism of the current framework.
Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure. Unfortunately, our rules and regulations have not kept pace.
— Paul Atkins (@SECPaulSAtkins) October 1, 2026
To that end, today’s proposal would… https://t.co/9C5LvRb8b5
He said crypto has moved from a niche experiment to an asset class that investors actively want exposure to, while regulations have lagged behind.
The new proposal is intended to replace that grey area with a more practical system for advisers and funds that want to hold crypto without operating in regulatory uncertainty.
If adopted, the rules could make it easier for regulated financial firms to offer crypto exposure without relying on unclear custody arrangements.
That could be especially important for investment advisers, registered funds, and other institutions that have avoided direct crypto exposure because of compliance concerns.
The proposal still has to go through the normal rulemaking process, so nothing changes immediately.
But the direction is clear: the SEC is trying to create a formal custody framework for crypto and Bitcoin instead of forcing firms to fit digital assets into rules designed around traditional securities.
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