The U.S. SEC plans to relax rules to allow more investment companies to custody crypto assets.

The U.S. Securities and Exchange Commission has proposed allowing more companies to hold digital assets on behalf of clients. Under a proposal published on October 1, investment managers would be permitted to hold clients' crypto assets if they determine that no other qualified custodian is available. State trust companies would also be allowed to provide custody services under the proposal. The 760-page proposal aims to bridge the gap between the rapid growth of new types of crypto securities and the qualified custodians willing and able to hold these assets on behalf of clients. Current rules stipulate that only qualified custodians may hold client assets. SEC Chairman Paul Atkins said in a statement: "For newly emerging crypto assets, custody capability may lag the asset's listing by months."