SEC signals more crypto proposals after custody rule overhaul
Chair Paul S. Atkins says additional crypto rules are coming as the agency proposes new custody standards for advisers and funds
The SEC wants the crypto industry to know it is not finished yet.
Alongside a proposed rewrite of how investment advisers and funds hold digital assets, SEC Chair Paul S. Atkins said that “more regulatory proposals are on the horizon.”
The latest proposal tackles one of the least glamorous but most important questions in finance: who gets to hold the assets, and how.
What the custody proposal actually does
On October 1, 2026, the SEC proposed a new framework for crypto custody. It covers registered investment advisers, investment companies, and business development companies.
The proposal aims to fix custody requirements that, by the SEC’s framing, have fallen out of date. Rules written for stocks and bonds do not map neatly onto assets that live on a blockchain.
Two changes stand out. First, the framework would allow self-custody of crypto assets, but only in limited circumstances.
Second, the proposal would let state trust companies serve as custodians for crypto. That would broaden the pool of entities eligible to hold assets on behalf of advisers and funds.
The framework also updates recordkeeping requirements for both advisers and funds.
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Atkins pitched the package as a compliant pathway for a sector that has operated in regulatory grey areas. The stated objective is to help on-chain markets develop inside the US instead of migrating offshore.
Nothing is final yet. Public comments will stay open for 60 days after the proposal is published in the Federal Register.
A steady drumbeat of SEC crypto moves
On August 18, 2026, the agency proposed Regulation Crypto Assets. That plan offers tailored exemptions for fundraising of up to $5 million over four years and includes a conditional safe harbor from certain definitions.
Meanwhile, the Clarity Act, legislation meant to set broader frameworks for the crypto market, stalled in September 2026.
The proposal also lands amid a personnel change. Commissioner Hester M. Peirce departs the SEC after the custody proposal.
What this means for advisers, funds, and custodians
The state trust company provision deserves attention from the custody industry itself. Expanding who qualifies as a custodian could change the competitive landscape for firms that hold digital assets on behalf of others.
A proposal is a draft, not a rule, and the comment period exists precisely so the industry and the public can push back or ask for changes.
Three things are worth watching next. First, publication in the Federal Register, which starts the 60-day comment clock.
Second, the additional proposals Atkins flagged. He did not say what they will cover, but the pace since August 18, 2026 suggests the agency is moving deliberately through the crypto rulebook.
Third, the shape of comments from advisers, funds, and custodians. Their feedback will help determine whether the self-custody and state trust company provisions survive intact, get tightened, or get expanded.