The US Securities and Exchange Commission is seeking to resolve a gap in custodial infrastructure for digital assets by amending the Investment Advisers Act and Investment Company Act. The proposal creates a tailored framework for the custody of crypto assets held by registered investment advisers and regulated funds, including registered investment companies and business development companies. Chairman Paul Atkins stated the agency aims to provide a "compliant pathway" for assets held under rules that largely predate the internet.

The changes would permit crypto assets to be held in self-custody under certain conditions and allow regulated funds to employ a wider range of crypto-related investment strategies. By removing barriers that currently limit the ability of advisers to offer digital asset advice, the SEC intends to expand choice for investors. This shift to rulemaking follows no-action relief the agency provided to the industry last year.