SEC Proposes Crypto Asset Custody Rules for Advisers and Funds

On October 1, 2026, the U.S. SEC published proposed rules for the custody of crypto assets by registered investment advisers, funds and business development companies.

On October 1, 2026, the U.S. SEC published proposed rules for the custody of crypto assets by registered investment advisers, funds and business development companies.

An SEC staff FAQ states that merely announcing a buyback of a crypto asset that is not a security in a functional crypto system does not automatically satisfy one element of the Howey test.

The U.S. CFTC updated its FAQ for registered entities dealing with tokenized forms of permitted customer-fund investments and blockchain recordkeeping.

ESMA will launch a new EU-wide supervisory priority in 2027. It will initially focus on the use of AI and tokenization in products and processes that directly affect clients.