[U.S. SEC Proposes Dedicated Regulatory Framework for Investment Advisors and Funds to Self-Custody Crypto Assets] BlockBeats News, October 2, according to official sources, the U.S. Securities and Exchange Commission (SEC) has proposed establishing a new regulatory framework to standardize the custody of crypto assets by investment advisors and regulated funds. This framework aims to provide a 'compliance pathway' for holding digital assets under a set of rules largely developed before the internet era. SEC Chairman Paul Atkins stated: 'Since the birth of Bitcoin in 2008, the crypto asset market has evolved from a niche novelty to an asset class worth trillions of dollars, with investors actively seeking exposure. Unfortunately, our rules and regulations have not kept pace with this development.' The proposal addresses a key issue faced by institutional investors, namely that qualified custody infrastructure may not yet exist for certain crypto assets. The proposal would also allow self-custody of crypto assets under specific circumstances and permit state-level trust companies to provide custody services for clients and regulated funds' crypto assets. This is particularly significant for asset management companies, hedge funds, and other institutions that wish to directly hold Bitcoin and other crypto assets rather than gain exposure through ETFs or other intermediaries. Additionally, the proposal would allow investment advisors to 'self-custody' crypto assets for clients and regulated funds in limited circumstances, including situations where the investment advisor determines that no qualified custodial institution is available. SEC Commissioner Hester Peirce further clarified that 'self-custody' in this context refers to investment advisors acting as custodians of client assets, rather than investors directly controlling their own crypto assets. [Original Link]