SEC Crypto Custody Proposal: What Wallet Users Should Know
On 1 October 2026, the SEC proposed letting investment funds hold crypto themselves or use state trust companies as custodians. That shift could change who is trusted to safeguard digital assets, including the tools everyday wallet users rely on.
What actually happened
According to The Block, the US Securities and Exchange Commission unveiled the proposal on 1 October 2026. It targets investment advisers and funds holding crypto assets. The plan would let these firms self-custody crypto in certain cases, instead of relying only on outside custodians. It would also let state-chartered trust companies qualify as custodians for crypto holdings. Today, advisers must use qualified custodians, usually banks or broker-dealers, for client assets. The report does not say which coins are covered, what conditions apply to self-custody, or whether a public comment window has opened. No SEC official is quoted in the available coverage.
How we got here
Crypto custody has been a sticking point for regulated firms for years. Existing SEC rules force advisers to park client assets with qualified custodians, and few banks offered crypto services. That left a gap: funds either avoided direct crypto holdings or turned to niche custodians outside the banking system. This proposal tries to close that gap by naming state trust companies as eligible custodians and opening a self-custody path. It fits a wider trend of US regulators updating rules written before digital assets existed.
Why this matters for you
If this moves forward, funds could face lower custody costs and more custodian choices. Firms with solid wallet security could manage assets directly instead of paying a third party. State trust companies get a new business line, competing with banks and crypto-native custodians. For regular wallet users, this matters indirectly: clearer institutional rules could pull more regulated money into crypto, deepening liquidity over time. It also signals which custody standards wallet builders, including those in the bonuz ecosystem, may eventually need to match.
The bigger question
Does letting regulated funds self-custody crypto lower risk by cutting out middlemen, or raise it by handing more responsibility to firms without bank-grade controls? The answer may shape custody rules worldwide, not just in the US.
What to watch
No comment deadline or final rule date has been confirmed yet. Watch for the SEC's formal filing, any comment period, and responses from custody providers and fund administrators. Track which state trust companies apply under the new framework. Bonuz will follow whether this shift nudges wallet security standards relevant to AR and smart-glasses hardware.
