In remarks to the U.S. Securities and Exchange Commission’s Crypto Task Force roundtable on custody, Commissioner Mark T. Uyeda argued that regulators should ensure Commission registrants have access to multiple crypto asset custody solutions that comply with federal securities laws, noting that the withdrawal of Staff Accounting Bulletin No. 121 has reduced barriers but left key policy questions unresolved. He urged the Commission to consider clarifying whether registered investment advisers can use state-chartered limited purpose trust companies as “qualified custodians” under the Advisers Act Custody Rule (Rule 206(4)-2), citing state banking regulators such as the New York State Department of Financial Services and the California Department of Financial Protection and Innovation and drawing parallels to Office of the Comptroller of the Currency interpretations supporting fiduciary crypto custody by national banks. He also suggested the Commission enhance competition by modifying or sunsetting the SEC’s “special purpose broker-dealer” regime, issuing interim guidance on how firms can custody non-security crypto assets, crypto asset securities, and traditional securities while complying with capital and customer protection rules, and later codifying that approach through rule amendments. Separately, he flagged that “funds” is undefined in the Custody Rule and said the Commission may need to clarify whether any crypto assets constitute “funds” for purposes of the rule, noting that prior assumptions that most crypto assets are funds or securities have driven advisers to place all client crypto into qualified custody arrangements.
U.S. Securities & Exchange Commission 2025-04-25
U.S. Securities and Exchange Commission commissioner calls for clearer rules and broader options for crypto asset custody
Commissioner Mark T. Uyeda of the U.S. Securities & Exchange Commission stressed the need for multiple compliant crypto asset custody solutions after withdrawing Staff Accounting Bulletin No. 121. He called for clarity on whether registered investment advisers can use state-chartered limited purpose trust companies as qualified custodians under the Advisers Act Custody Rule. Uyeda also suggested enhancing competition by modifying the SEC’s special purpose broker-dealer regime and issuing interim guidance on custody practices for various asset types.