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SEC Proposes Last-Resort Crypto Self-Custody for Advisers and Funds

Published

3 October 2026

Topic

regulatory

◆ Sectors

Fintech

◆ Geography

United States

◆ Source

Read at financemagnates.com →

◆ Verified

Fusion42 · 3 October 2026 · Fusion42 review

The US SEC has proposed allowing investment advisers and regulated funds to self-custody crypto assets only when no permitted custodian is available, introducing strict operational and oversight requirements. The proposal also formally recognises eligible state trust companies as crypto custodians, aiming to offer alternatives for assets lacking traditional custody support.

This Wire brief sits within Fusion42's coverage of Fintech, and 10 sources have reported it between 22 Sep 2026 and 3 Oct 2026.

◆ ◆ The Wire takeaway

You must adapt your fund's custody strategy to document the absence of permitted custodians before self-custodying crypto assets. This shift opens the door for selective self-custody but requires you to build rigorous controls and governance immediately.

◆ Coverage

10 sources · first reported 22 Sep 2026 · latest 3 Oct 2026

◆ Related on Wire

◆ Topics

Fintechseccryptoself-custodyregulationinvestment-advisers