According to CoinMeta, the U.S. Securities and Exchange Commission (SEC) has proposed to allow more companies to hold digital assets on behalf of their clients. Under the proposal, which was released on October 1st, investment managers will be permitted to hold clients' crypto assets if no other qualified custodians are available. State-owned trust companies would also be eligible. This 760-page proposal aims to bridge the gap between the rapid development of new types of crypto securities and the lack of qualified custodians willing and able to hold these assets on behalf of clients. Current regulations stipulate that only qualified custodians, typically banks or brokers, are allowed to hold client assets. SEC Chair Paul Atkins stated that the implementation of these new custodian requirements could be several months behind the launch of the assets. The rule is designed to protect crypto investors by requiring custodians to have the capability to safeguard clients' digital wallets from hacker attacks or accidental losses. If investment advisors later determine that a bank or broker is available to hold the assets, the assets must be transferred to that custodian. The SEC will open a 60-day public comment period on this measure before incorporating feedback into the final version of the rule.