The Conundrum of Crypto Custody: Regulatory Considerations for Investment Advisers (Volume 59, Number 7—April 8, 2026)
Author: Alice S. Hrdy, Christine A. Schleppegrell, Ellen G. Weinstein & Naina Adhikari.
Source: Volume 59, Number 07, April 1 2026 , pp.101-113(13)
Abstract:
As clients demand exposure to crypto assets, SEC-registered investment advisers weigh how to integrate crypto assets into investment offerings while navigating major regulatory hurdles, including uncertainty around safeguarding and custody. This article surveys the federal custody framework, state virtual currency and money-transmitter laws, and key pending legislative proposals.Keywords: Keywords: Safeguarding and Custody Crypto Assets; State-Chartered Trust Companies (“STCs”) as Qualified Custodians; State Money Transmission Laws; The GENIUS Act ; The CLARITY Act
Affiliations:
1: Morgan, Lewis & Bokius LLP.