The SEC plans to amend the 1940 Act rules: allowing investment advisors to directly hold Bitcoin without a qualified custodian

Bitcoin News posted on platform X that the SEC plans to propose new rules under the 1940 Act, allowing investment advisors to directly hold related assets when no qualified custodian is willing to custody Bitcoin and other digital assets.

The SEC stated that traditional custodians typically refuse to custody such assets, creating a compliance gap in the existing custody framework. The proposal will initiate a 60-day public comment period after its publication in the Federal Register.