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ARTICLE · 14 OCTOBER 2026

Crypto Brief - October 1, 2026

Lowenstein Sandler LLP
Lowenstein Sandler LLP
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Lowenstein Sandler LLP

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The SEC proposes new custody rules for crypto assets held by investment advisers and funds, allowing self-custody under strict conditions. Meanwhile, regulatory developments continue with new FAQs on crypto asset classification, state certification procedures under the GENIUS Act, and state-level actions including Illinois's digital asset tax and California's meme coin ban.

United StatesFinance and Banking
Ethan L. Silver
Ethan L. Silver
William Brannan
William Brannan

Lowenstein Crypto advises leading digital asset and cryptocurrency projects, exchanges, and trading firms. Our practice covers regulatory advice, transactions and structuring advice, investigations, and adversarial matters including commercial disputes, bankruptcy, and related litigation. As these markets continue their rapid growth and market participants continue to evolve and mature their businesses, we are providing this weekly digest as a resource that highlights and summarizes a selection of key recent legal regulatory developments.

SEC Releases Proposal For Crypto Assets Custody Rules For Investment Advisors and Funds

On October 1, Securities and Exchange Commission (SEC) released proposed rules in connection with the custody rules for crypto assets held by investment advisers and funds (the Proposed Rules). Under the Proposed Rules, investment advisers and funds would be allowed to self-custody crypto assets, provided that at the outset and every quarter, it is determined

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