SEC Proposes Crypto Custody Rules as Weak Jobs Data Lifts Bitcoin

SEC Unveils a Tailored Custody Framework

On Thursday, the Securities and Exchange Commission proposed new rules and amendments covering how registered investment advisers and regulated funds hold crypto assets. The proposal applies to advisers, registered investment companies and business development companies, and it updates custody requirements written long before digital assets existed.

SEC Chair Paul Atkins said the existing rules were designed around traditional assets and have left advisers without a clear, compliant path for crypto. The new framework is meant to supply one.

What Advisers and Funds Could Do Under the Proposal

The plan introduces two notable options. First, state-chartered trust companies would gain a defined route to serve as crypto custodians for advisers and regulated funds. Second, advisers could hold client crypto themselves in limited circumstances, including when they determine that no permitted custodian is available.

Commissioner Hester Peirce clarified that this form of self-custody means the adviser acts as custodian, not that investors directly control their own keys. She added that self-custody is not right for everyone, but many crypto owners value the ability to hold their own assets.

The proposal follows a 2023 draft that critics argued could have made compliant crypto custody harder. That earlier plan was withdrawn in June 2025.

Not a Final Rule Yet

It is important to note that this is a proposal, not an adopted rule. A 60-day public comment period will open once it is published in the Federal Register. Asset managers, custodians, banks and crypto firms are expected to weigh in, and the final text could change. Further SEC and CFTC proposals are also expected.

A Weak Jobs Report Shifts the Macro Backdrop

The Bureau of Labor Statistics reported that the US economy added just 29,000 jobs in September, far below the roughly 90,000 economists had forecast. The unemployment rate rose to 4.2% from 4.1%, partly because more people entered or re-entered the labor force. Annual wage growth slowed to 3%, the lowest reading since May 2021.

Traders read the data as a sign that the Federal Reserve is likely to hold rates steady at its late-October meeting. Treasury yields fell and stock futures rose after the release.

Bitcoin Responds to Falling Rate-Hike Bets

Bitcoin climbed roughly 2% to 3% on the day and traded close to $87,000, a level that had capped gains over the past two weeks. Short covering added momentum as the price moved through clustered sell orders near $85,000. Analysts noted that a sustained move higher would likely depend on Treasury yields continuing to ease.

What to Watch Next

Market participants will be watching the comment period on the SEC's custody proposal, any follow-up rules from the SEC and CFTC, and the Fed's October decision. Together, clearer institutional rules and easing rate pressure could shape how traditional finance approaches digital assets in the months ahead.