Matthew Sigel, head of digital assets research at VanEck, posted on X today, October 1, 2026, that the Securities and Exchange Commission (SEC) is "SEC moving to formalize crypto custody rules for investment advisers and funds, following last year’s no-action relief. Guidance --> rulemaking." Sigel's post indicates a significant shift in the regulatory approach to digital assets, moving beyond temporary measures to establish more permanent and legally binding frameworks. This signals a maturation of oversight for how financial institutions manage client digital assets.
This development comes amidst an environment of increasing institutional engagement with digital assets. Recent Gokhshtein coverage highlighted that Nate Geraci reported on the SEC's proposal for a new crypto custody framework, indicating ongoing regulatory focus in this area. The market has also observed substantial inflows into crypto exchange-traded funds (ETFs), with Bitcoin ETFs maintaining an eight-day inflow streak. While Ethereum ETFs have recently seen outflows, the broader trend points to growing institutional interest in regulated crypto products. Bitcoin is currently trading at $84,746, up 1.1% over 24 hours.
Sigel's statement implies that the SEC aims to provide clearer, standardized rules for how investment advisers and funds handle digital assets, potentially increasing transparency and security for investors. This formalization could encourage broader participation from traditional financial entities by reducing regulatory uncertainty. Observers will be watching for the specific details of the proposed rules, as they will define the operational parameters for institutions dealing with crypto assets and could influence the pace of institutional adoption within the digital asset sector.
