The U.S. Securities and Exchange Commission announced on 1 October 2026 a proposal that would permit investment advisers and regulated funds to hold Bitcoin and other crypto assets directly, under defined conditions, and to use state trust companies as custodians. The proposal is designed to close infrastructure gaps in existing custody arrangements and reduce dependence on ETFs and intermediary structures. It now enters a 60-day public comment period before any potential finalization.
The proposal directly affects Bitcoin and Ether, the two largest crypto assets by market capitalisation, as they are the primary instruments investment advisers and funds hold or seek to hold on behalf of clients. Asset managers and registered investment advisers operating under SEC oversight are also materially affected, as the rules would alter the permissible structures through which they access and custody digital assets.
The SEC's initiative follows longstanding regulatory constraints that have limited the direct participation of regulated funds in crypto markets, with custody requirements cited as a principal barrier. No official comment period outcome or finalisation date has been announced; the 60-day window for public submissions is the next procedural step in the rulemaking process.
Sources: investinglive.com, Cnbc TOP, CoinTelegraph