The SEC (U.S. securities regulator) proposed a crypto custody framework on October 1, 2026, covering registered investment advisers, investment companies, and business development companies. The plan would permit self-custody in limited circumstances, allow state trust companies to act as custodians, and update recordkeeping requirements. SEC Chair Paul S. Atkins said "more regulatory proposals are on the horizon," as the agency seeks to create a compliant path for on-chain markets in the United States rather than offshore. The proposal is not final, and a 60-day public-comment period will begin after publication in the Federal Register. It follows the August 18, 2026 proposal for Regulation Crypto Assets, while the Clarity Act stalled in September 2026. Commissioner Hester M. Peirce is departing the SEC after the custody proposal. Comments from advisers, funds, and custodians will help shape the final treatment of self-custody and state trust companies.