SEC plans to revise 1940 law rules to allow investment advisors to directly hold Bitcoin

The SEC plans to propose new 1940 Act rules that allow investment advisors to hold Bitcoin and other digital assets directly when there is no qualified custodian willing to hold them. The SEC stated that traditional custodians typically refuse to custody such assets, and there are compliance gaps in the existing custody framework. The proposal will initiate a 60 day public opinion period after its publication in the Federal Register.