The U.S. Securities and Exchange Commission proposed new rules and amendments that would provide a tailored framework for the custody of crypto assets for registered investment advisers and regulated funds, the agency said Thursday.

Regulated funds would include registered investment companies and business development companies, it said.

The proposal would expand investor choice by eliminating barriers that restrain the adviser’s ability to provide crypto-related investment advice. It would also allow regulated funds to offer clients a wider range of crypto-asset-related investment strategies.

SEC Chairman Paul Atkins said the proposal is intended to bring regulation up to date with the development of the crypto industry, which has grown…