SEC Chair Considering Allowance for Investment Advisors to Hold Cryptocurrency Custody

SEC Chair Paul Atkins instructed staff to develop a proposed rule permitting investment advisors meeting specific criteria to directly hold customer and regulated fund cryptocurrencies, according to Bitcoin.com. Atkins stated that for some cryptocurrencies, qualified third-party custodians do not yet exist, prompting the SEC to consider allowing investment advisors to self-custody while also reviewing recognition of state-authorized trust companies as custodians. The SEC has previously introduced measures permitting the use of state-chartered trust companies as cryptocurrency custodians under certain conditions.