The U.S. Securities and Exchange Commission (SEC) has proposed new regulations aimed at making it easier for investment advisors and regulated funds to hold cryptocurrencies on behalf of their clients. Meanwhile, following a stall in comprehensive legislation in Congress, U.S. regulators continue to advance the development of crypto regulations.

This proposal was announced on Thursday in the United States, aiming to establish a specialized framework for the custody of crypto assets held by registered investment advisors, investment companies, and business development firms.

SEC indicates that these changes are aimed at modernizing the hosting requirements of decades ago and eliminating what they describe as regulatory barriers that restrict advisors from providing crypto-related investments.

According to the proposed rules, in 'certain circumstances', crypto assets can be managed by the holders themselves; state trust companies can also act as custodians for crypto assets held by clients and regulated funds.

According to SEC, these changes may also provide regulated funds with more flexibility in offering investors crypto-related investment strategies.

SEC Chairman Paul Atkins stated that current regulations have failed to keep up with the rapid expansion of digital assets, and that this market has now grown into a trillion-dollar market.

Atkins said, "Today's proposal will provide a clear regulatory framework for the custody of crypto assets, offering investment advisors and funds a compliant path that did not exist before."

At the time this proposal was introduced, U.S. regulatory agencies were advancing the construction of a crypto regulatory framework based on their existing authorities, as a comprehensive bill regarding the structure of the crypto market known as "Clarity Act" had stalled in the Senate in September.

This also marks another step forward in SEC's broader efforts to rewrite the regulatory framework for digital assets in the United States under the leadership of Atkins. After the proposal is published in the Federal Register, it will be open to public comment for 60 days.

As regulation advances, the crypto market has shown signs of regaining strength after experiencing sharp fluctuations at the beginning of the year. With improved risk appetite, Bitcoin has rebounded by more than 40% since its July low, driving up demand for digital assets.

This rebound occurred after a continuous decline from the end of 2025 to the first half of 2026.