The US Securities and Exchange Commission (SEC) officially introduced new custody regulations for digital assets on October 1, 2026. Filed under File No. S7-2026-35, the proposal titled “Adviser and Regulated Fund Custody Rules; Crypto Custody Rules” aims to modernize standards for registered investment advisers and regulated funds.
The initiative, developed by the SEC’s Crypto Task Force, seeks to enhance transparency in recordkeeping and reporting. It is designed to assist firms in fulfilling their obligations under the Investment Advisers Act and the Investment Company Act, while establishing a formal framework for crypto investment advice.
This proposal follows a period of regulatory transition. The SEC previously withdrew a 2023 safeguarding proposal in June 2025. Additionally, in September 2025, the agency issued a no-action letter allowing specific state-chartered trust companies to act as qualified custodians for digital assets.
Before its public release, the document underwent review by the Office of Management and Budget, starting around August 25, 2026. The current proposal is not final, and the SEC has opened a 60-day public comment period following its publication in the Federal Register.
