The SEC proposed new custody rules for investment advisers and funds, marking a final policy move for departing Crypto Task Force chief Hester Peirce. The proposal creates a regulatory transition point for crypto managers and custodians as Peirce leaves the agency.
The story
The SEC issued a proposed custody rule for investment advisers and funds, according to CoinDesk, in a policy move tied to Hester Peirce’s departure this week. Peirce was the inaugural chief of the SEC’s Crypto Task Force.
The proposal arrives as the agency’s crypto-policy leadership changes. Peirce’s exit makes the custody framework both a rulemaking action and a marker for the direction of the task force after its first chief leaves.
The groups directly affected are investment advisers and funds that hold or manage crypto assets, along with the custodians serving them. The mechanism is regulatory: custody requirements can determine which entities may safeguard assets and how advisers and funds structure those relationships.
The proposal is not yet a final rule. Its eventual requirements, timing and treatment of crypto custody arrangements remain open as the SEC’s rulemaking process continues.
The next points to watch are the SEC’s rulemaking timetable, the contents of the proposed custody framework and the agency’s approach after Peirce’s departure. The final rule and any implementation schedule would establish the obligations for advisers, funds and custodians.
Our take
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Our read · Oct 1
The SEC proposed custody rules for crypto held by investment advisers and funds as Hester Peirce exits this week.
Why
The immediate consequence is a new compliance framework for advisers, funds and crypto custodians, but the proposal’s final requirements and timing are not yet established. Peirce’s departure adds policy-transition uncertainty rather than a clear single-name equity read.
What could change this view
The proposal could change materially or lose momentum after Peirce leaves, limiting its practical effect on crypto custody businesses.
▲ The case it holds
A formal SEC proposal gives advisers, funds and custodians a defined rulemaking process around crypto custody instead of relying only on policy uncertainty.
▼ The case it breaks
The rule is not final, and Peirce’s exit could alter the agency’s approach before any custody obligations take effect.
Source: CoinDesk · Published here THU, OCT 1 · 4:20 PM ET · the only report in this record · How this is decided →
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