Nate Geraci, president of The ETF Store, reported on a significant regulatory development from the U.S. Securities and Exchange Commission on Thursday, October 1, 2026. Posting on X, Geraci highlighted the SEC's move to provide what he termed "crypto *clarity*" by proposing "new framework for custody of crypto assets by investment advisors & funds. Would permit crypto assets to be held in self-custody under certain circumstances & allow use of state trust companies as custodians for client & regulated fund crypto assets. SEC Chair Atkins: “More regulatory proposals are on the horizon.” Moving quickly & aggressively. Like I said, some politicians are going to wish they passed Clarity Act."
The proposed framework emerges as digital asset investment vehicles continue to attract institutional interest. Recent reports from Gokhshtein Media indicate that Bitcoin ETFs have extended an inflow streak to eight days, while Ether, XRP, and Solana ETFs logged $37 million in daily inflows as Seoul Blockchain Week kicked off. Discussions around XRP ETF adoption and stablecoin models also took center stage at Ripple's Swell 2026, drawing 1,500 attendees, underscoring the growing demand for regulated access to digital assets.
Geraci's commentary suggests the SEC is taking an aggressive approach to defining the regulatory landscape for crypto assets. The proposal's allowance for self-custody under specific conditions and the use of state trust companies could significantly impact how investment advisors and funds manage client and regulated crypto holdings. This proactive stance by the SEC might pre-empt legislative efforts, as Geraci implies some politicians may regret not having passed a comprehensive Clarity Act sooner.
