The U.S. SEC proposes to ease crypto asset custody rules, allowing investment advisers to self-custody client assets under specific circumstances.

According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has proposed amendments to new crypto asset custody rules, which would allow registered investment advisors and regulated funds to self-custody crypto assets under specific conditions, and permit qualified state-chartered trust companies to act as crypto asset custodians. Under the proposal, if no compliant custodian is available for a specific crypto asset, the investment advisor may self-custody associated client assets, subject to at least quarterly reassessment of custodian availability and compliance with requirements including private key security, cybersecurity, and client asset segregation. Any asset transfer would require approval from at least two authorized individuals. Should a compliant custodian become available thereafter, the relevant assets must be transferred as soon as reasonably practicable. The proposal remains in the rulemaking stage and will feature a 60-day public comment period following its publication in the Federal Register.