Wire · regulatory
SEC proposes new crypto custody framework as investor protection debate intensifies
◆ Sectors
◆ Geography
◆ Source
◆ Verified
Fusion42 · 6 October 2026 · Fusion42 review
The SEC has proposed a new crypto custody framework that allows state-chartered trust companies to act as custodians and modernises custody rules under the Investment Advisers Act and Investment Company Act to better protect investors. The proposal includes provisions for advisers or regulated funds to self-custody crypto when no qualified custodian is available, with added safeguards, aiming to provide a clearer regulatory framework amid ongoing debates on crypto investor protection.
This Wire brief sits within Fusion42's coverage of Fintech, and 12 sources have reported it between 22 Sep 2026 and 6 Oct 2026.
◆ ◆ The Wire takeaway
You must adapt your crypto custody approach now that the SEC recognises more custody options, including self-custody with safeguards and qualified state trust companies. This opens new compliant pathways but also puts a spotlight on your custody practices—you can no longer rely solely on traditional custodians.
◆ Coverage
12 sources · first reported 22 Sep 2026 · latest 6 Oct 2026
◆ Related on Wire
◆ Topics