The U.S. Securities and Exchange Commission has proposed a crypto custody framework for registered investment advisers, registered investment companies and business development companies. The plan would allow advisers to hold crypto assets themselves in limited cases when no permitted custodian is available, while permitting eligible state trust companies to provide custody after assessments of their legal authority and safeguards. Chairman Paul Atkins said the proposal addresses uncertainty created by custody rules developed before crypto markets and by delays in support for newly launched assets. The SEC issued the proposal on Oct. 1 under file number S7-2026-35, alongside related reporting, recordkeeping, audit and broker-dealer custody amendments. The rules are not final, and comments will be accepted for 60 days after publication in the Federal Register.