The US Securities and Exchange Commission has proposed a new custody framework for registered investment advisers and regulated funds holding crypto assets. The rules would let advisers keep certain client and fund crypto themselves when no qualified custodian is available, while opening the custody market to state trust companies.

It is a proposal, not a final rule. The public comment period will remain open for 60 days after the proposal appears in the Federal Register. Its publication date was not confirmed in the available material.

Giving Advisers a Direct Route to Custody

The familiar image of crypto custody is a wallet held by an exchange or another specialist. The proposal adds a less conventional option: an adviser holding a…