SEC Revives Crypto Custody Rule for Investment Advisers - Altcoin Buzz

The U.S. Securities and Exchange Commission (SEC) has revived a proposal that would impose stricter custody requirements on investment advisers handling client crypto assets. The rule, initially floated under the previous administration, aims to close a regulatory gap by requiring advisers to place digital assets with qualified custodians — a step designed to protect investors from mismanagement or loss. By bringing the measure back, the SEC signals that crypto oversight remains a priority, even as the broader regulatory landscape evolves.

For the market, this development carries significant weight. If adopted, the rule would likely raise compliance costs for advisers and may push some smaller firms to offload crypto services or partner with specialized custodians. It could also accelerate institutional adoption by offering clearer standards for asset safekeeping, which many professional investors have cited as a prerequisite for larger allocations.

What to watch: the SEC's request for public comment, any carve-outs for self-custody or decentralized finance, and whether the final version aligns with existing frameworks from other regulators. The outcome will help define how investment advisers integrate digital assets into regulated portfolios.