🚨 The SEC just proposed the first real crypto custody rulebook for registered funds and investment advisers The custody rules funds operate under were written in 1940. They recognize banks, broker-dealers and futures merchants. They don't recognize crypto. So advisers holding crypto have been improvising for a decade. The proposal changes two things: 1. State trust companies — Coinbase Custody, BitGo Trust, Gemini — become permitted custodians. The adviser has to confirm the state banking regulator authorized it for crypto and that it has safeguarding policies. 2. Advisers can self-custody, but only after determining no permitted custodian will hold that specific asset. They have to re-check every quarter. Atkins says custody support can lag an asset's launch "by many months." That gap is why registered funds hold BTC and ETH and almost nothing else. Remove it and the long tail opens up. It's a proposal, not a rule. 60-day comment period once it hits the Federal Register. The Commission is currently all-Republican. More here: https://thedefiant.io/converge/regulation/sec-proposes-crypto-self-custody-route-for-investment-advisers