The U.S. Securities and Exchange Commission (SEC) has proposed a new regulatory framework for the custody of cryptocurrencies by investment advisors and regulated funds. According to The Block, this is a measure to provide a compliant route for holding cryptocurrencies within the framework of existing regulations established before the widespread adoption of the internet. Regarding this, SEC Commissioner Paul Atkins explained, "It addresses key pain points for institutional investors where qualified custody infrastructure for some cryptocurrencies is not yet in place, while also modernizing overall custody-related regulations under the Investment Advisers Act and the Investment Company Act."
