The SEC has proposed allowing funds and investment companies to self-custody cryptocurrency. After the document is published, a 60-day public comment period will begin. The new rules would establish a separate custody regime for registered investment advisers and regulated funds regarding digital assets.

In certain cases, self-custody would be permitted without requiring assets to be transferred to a third-party custodian. State-registered trust companies would also be allowed to hold client crypto assets.

The regulator aims to lift some existing restrictions and provide funds with access to a broader range of crypto strategies.