The U.S. Securities and Exchange Commission has proposed new rules that would make it easier for investment advisers and regulated funds to hold cryptocurrencies on behalf of clients, as U.S. regulators push ahead with writing crypto rules after a sweeping legislation stalled in Congress.
The proposal, announced Thursday stateside, would establish a tailored framework governing how registered investment advisers, investment companies and business development companies hold custody of crypto assets.
The changes are aimed at modernizing decades-old custody requirements and removing regulatory barriers that the SEC says have limited advisers' ability to offer crypto-related investments.
Under the proposed rules, crypto assets could be held in self-custody under "certain circumstances," while state trust companies could also serve as custodians for crypto assets belonging to clients and regulated funds.
The changes could also give regulated funds greater scope to offer investors crypto-related investment strategies, according to the SEC.
SEC Chairman Paul Atkins said existing regulations had failed to keep pace with the rapid expansion of digital assets, which have grown into a multi-trillion-dollar market.
"Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before," Atkins said.
The proposal comes as U.S. regulators push ahead with building out a crypto rulebook under their existing authority after the Clarity Act, a sweeping crypto market structure bill, stalled in the Senate in September.
That marks another step in the SEC's broader effort to rewrite the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days after it is published in the Federal Register.
With broader crypto legislation stalling in Congress, regulators are exerting their existing powers to address individual parts of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.
"What we're increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody," he told CNBC via email.
The changes could also increase competition among crypto custodians, potentially lowering the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers
The regulatory push also comes as crypto markets show signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite have helped revive demand for digital assets.
The recovery follows a prolonged downturn from late 2025 into the first half of 2026.