UPDATE: Hester Peirce critiques SEC crypto custody proposal over self-custody limits
CIE News ·
Outgoing SEC Commissioner Hester Peirce released a statement critiquing the agency's crypto custody proposal for how it defines self-custody and quarterly proof requirements.
Outgoing SEC Commissioner Hester Peirce issued a statement on October 3, 2026, critiquing the SEC's custody overhaul proposal, which was previously advanced to establish rules for registered investment advisers and funds. Peirce challenged the proposed rules requiring advisers to prove quarterly that no eligible custodian exists, remarking that the agency's definition fails to reflect true self-custody. The proposal under the Investment Advisers Act of 1940 and Investment Company Act of 1940 codifies the eligibility of state-chartered trust companies and is open for public comment for 60 days following publication in the Federal Register.