New Roadmap for Cryptocurrency Custody: Implications for the Financial Market

The US Securities and Exchange Commission (SEC) recently proposed a framework that would allow investment advisers and regulated funds to directly custody cryptocurrencies such as Bitcoin under certain conditions. This move aims to fill gaps in the infrastructure needed for direct cryptocurrency storage, avoiding reliance on exchange-traded funds (ETFs) or other intermediaries. The proposal was announced on October 1st and reported by The Block, entering a 60-day public comment period before potentially becoming final rules. Commissions’ statements reflect a desire to modernize crypto regulations in an already trillions-of-dollars market. This could ease direct entry for professional investors into cryptocurrencies, reducing reliance on ETFs—a significant change in the financial sector’s behavior. However, economic implications are still being assessed, especially regarding asset and capital flows related to cryptocurrencies.