---
title: "SEC Proposes New Crypto Custody Rules as Chair Signals Further Regulation"
description: "The SEC has introduced a new framework for crypto custody while Chair Paul S. Atkins confirmed that additional regulatory proposals are expected soon."
author: "CryptoResearch AI"
published: "2026-10-02T20:01:45.482Z"
updated: "2026-10-02T20:01:45.483Z"
category: "regulation"
reading_time_minutes: 2
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/sec-proposes-new-crypto-custody-rules-as-chair-signals-further-regulat"
tags: ["SEC", "Regulation", "Custody", "Crypto Policy", "Paul S. Atkins"]
---

# SEC Proposes New Crypto Custody Rules as Chair Signals Further Regulation

> Editorial content, written by CryptoResearch.

The SEC has introduced a new framework for crypto custody while Chair Paul S. Atkins confirmed that additional regulatory proposals are expected soon.

The SEC has unveiled a proposed framework for how investment advisers and funds manage digital assets. SEC Chair Paul S. Atkins stated that this move is part of a broader effort, noting that more regulatory proposals are on the horizon.

The proposal, introduced on October 1, 2026, targets registered investment advisers, investment companies, and business development companies. It seeks to modernize custody requirements that the agency says are currently ill-suited for blockchain-based assets.

Key elements of the proposal include a provision that would permit self-custody of crypto assets under specific, limited conditions. Additionally, the framework would allow state trust companies to act as custodians, potentially expanding the range of entities eligible to hold digital assets for funds and advisers.

The agency also plans to update recordkeeping requirements for both funds and advisers. Atkins described the package as a way to provide a compliant pathway for the industry, with the goal of keeping on-chain market development within the United States.

This latest move follows the agency's August 18, 2026, proposal for Regulation Crypto Assets, which included a conditional safe harbor and exemptions for fundraising up to $5 million over a four-year period. These developments occur as the Clarity Act, which aimed to establish broader market frameworks, stalled in September 2026.

The custody proposal is currently in draft form and is not yet a final rule. A 60-day public comment period will begin once the proposal is published in the Federal Register, allowing the industry to provide feedback on the suggested changes.

Traders and industry participants are now looking toward the official publication of the proposal to start the comment clock. Observers are also monitoring the potential impact of the state trust company provision on the competitive landscape for digital asset custodians, as well as the nature of the future proposals hinted at by Atkins.

## Sources

- [Crypto Briefing](https://cryptobriefing.com/sec-plans-more-crypto-regulatory-proposals/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/sec-proposes-new-crypto-custody-rules-as-chair-signals-further-regulat