SEC Proposes Crypto Custody Framework for Investment Advisers and Funds

The proposal matters less for what it mandates than for what it concedes: that crypto assets can be custodied within the existing adviser and fund framework rather than only outside it. That reframes custody from an enforcement question into a compliance-design question, which is where institutional participation has been stuck. The affected parties are registered advisers and regulated funds weighing digital-asset exposure, plus the custodians serving them. The open question is whether the tailored approach holds through comment and adoption, or narrows under industry pushback.