SEC Chair Paul Atkins Seeks Proposal on Direct Crypto Custody for Advisers

SEC Chair Paul Atkins said he has asked staff to draft a proposal that would allow investment advisers to directly custody clients' and regulated funds' crypto assets under certain conditions, while also considering whether state trust companies could serve as custodians. According to Odaily, Atkins said some crypto assets do not yet have qualified third-party custodians. The custody proposal is part of the SEC's broader crypto regulatory framework. The framework also includes a crypto asset rule proposal submitted on August 18 and a plan to modernize transfer agent rules, which would cover crypto issuance and transfers. Atkins also urged Congress to advance the CLARITY Act, which failed to move forward in a Senate procedural vote on September 15 by 49 votes to 50.