On October 1, the SEC proposed updates to the Investment Company Act custody rules and amendments to the Advisers Act custody rule to modernize how advisers and regulated funds safeguard crypto assets. The proposal highlights risks unique to digital assets, such as securing private keys, addressing cybersecurity vulnerabilities, and the irreversible on‑chain transactions, while clarifying when advisers and regulated funds can rely on permitted custodians, including certain State‑chartered trust companies. The proposal also outlines conditions under which advisers and regulated funds may use self‑custody in limited circumstances. Continue reading "SEC Proposes Rulemaking Related to Custody..." »