Addresses gap: Advisers Act 1940 + Investment Company Act 1940 custody rules pre-internet, no pathway for crypto — Quote Atkins: "Since Bitcoin in 2008, crypto grew from niche curiosity into multi-trillion-dollar asset class investors actively seek exposure. Unfortunately, our rules have not kept pace" — Provides "compliant pathway where none existed before"*$GTC $MOVR $龙虾
- *Two new custody paths:*
1. *Adviser self-custody (term = adviser holding client/regulated fund assets, NOT retail true self-custody per Peirce) — allowed only if adviser determines no permitted custodian available (ex: newly launched token), subject to safeguarding, controls, investor protection, expertise requirement, quarterly review if custodian becomes available — likely rare per SEC official*
2. *State-chartered trust companies authorized as qualified custodians for advisers + regulated funds (investment companies + BDCs) — expands beyond banks/broker-dealers — Atkins says works in practice, staff to set conditions*
- *Plus: Eliminates barriers to advisers giving crypto advice, lets regulated funds offer wider crypto strategies, allows blockchain records to count for compliance, updates audit + disclosure requirements*
- *Process: 60-day public comment, then final vote — pushed despite Clarity Act stalled in Senate — criticism: Better Markets says self-custody reintroduces loss/misuse risk SEC exists to prevent, state trusts = "hodgepodge less rigorous" oversight — Peirce: "True self-custody not right for everyone, but many prize it... Regulators should zealously protect right to self-custody"*
- *Mkt: BTC $84.8K +1.5%, ETH $2.70K +0.7% after release*
*BREAKING 🚨 SEC Oct 1 unveils crypto custody overhaul — Chairman Atkins 760p proposal: RIAs & funds can self-custody if no qualified custodian avail + quarterly review, state trust companies OK'd as custodians, blockchain records count for compliance, lifts bans on crypto advice, broadens fund strategies — 60-day comment — "replaces grey of uncertainty" — BTC $84.8K 🚀*
- *Two new custody paths:*
1. *Adviser self-custody (term = adviser holding client/regulated fund assets, NOT retail true self-custody per Peirce) — allowed only if adviser determines no permitted custodian available (ex: newly launched token), subject to safeguarding, controls, investor protection, expertise requirement, quarterly review if custodian becomes available — likely rare per SEC official*
2. *State-chartered trust companies authorized as qualified custodians for advisers + regulated funds (investment companies + BDCs) — expands beyond banks/broker-dealers — Atkins says works in practice, staff to set conditions*
- *Plus: Eliminates barriers to advisers giving crypto advice, lets regulated funds offer wider crypto strategies, allows blockchain records to count for compliance, updates audit + disclosure requirements*
- *Process: 60-day public comment, then final vote — pushed despite Clarity Act stalled in Senate — criticism: Better Markets says self-custody reintroduces loss/misuse risk SEC exists to prevent, state trusts = "hodgepodge less rigorous" oversight — Peirce: "True self-custody not right for everyone, but many prize it... Regulators should zealously protect right to self-custody"*
- *Mkt: BTC $84.8K +1.5%, ETH $2.70K +0.7% after release*
*BREAKING 🚨 SEC Oct 1 unveils crypto custody overhaul — Chairman Atkins 760p proposal: RIAs & funds can self-custody if no qualified custodian avail + quarterly review, state trust companies OK'd as custodians, blockchain records count for compliance, lifts bans on crypto advice, broadens fund strategies — 60-day comment — "replaces grey of uncertainty" — BTC $84.8K 🚀*
