SEC Moves to Let Investment Advisers Custody Bitcoin When No Qualified Custodian Is Available
AI Market Summary
The SEC's planned 1940 Act custody proposal would allow advisers to hold Bitcoin directly when no qualified custodian will accept it, addressing a key compliance bottleneck created by traditional custodians' reluctance. If advanced, the rule could reduce operational friction for registered advisers and expand pathways for regulated allocation to digital assets. A 60-day comment window introduces near-term headline risk around scope and implementation.
Impact level
● High
Affected assets
BTC/USDT+0.18%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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ME News reported that on Oct. 4 (UTC+8), Bitcoin News wrote on X that the U.S. Securities and Exchange Commission is preparing to propose rule changes under the Investment Company Act of 1940. The draft would allow investment advisers to hold digital assets such as Bitcoin directly in cases where no qualified custodian is willing to provide custody. The SEC said traditional custodians often decline to safeguard these assets, leaving a compliance gap under the current custody framework. Once published in the Federal Register, the proposal will open a 60day public comment period. (Source: ChainCatcher)
