The market this morning

SEC proposes crypto custody framework for investment advisers and funds, with self-custody allowed in some cases

By Crypto Info News

Good morning. The US Securities and Exchange Commission proposed new rules and amendments on 1 October to set out how registered investment advisers and regulated funds may custody crypto assets under the federal securities laws, according to the SEC's own press release. The Block, CoinDesk and Decrypt all reported the proposal, which they describe as permitting the use of state trust companies as custodians and allowing self-custody under certain conditions. Decrypt said the aim is to replace years of ambiguity with a clear compliance path. CoinDesk noted the proposal marks a swan song for Commissioner Hester Peirce, the regulator's first Crypto Task Force chief, who exits this week.

Security remained a live concern. Chainalysis published an account of how its investigators, using AI, traced the $387 million that it attributes to North Korea stealing from the exchange Bitget on 24 September. Decrypt reported that Zcash's ZEC token sits 21% off its $1,698 peak after ETF outflows and a suspected North Korean heist that it says routed money through the token's shielded pool; Decrypt framed whether the rally is over as an open question rather than a settled one.

On corporate treasuries, Cointelegraph and Decrypt reported that Evernorth cleared a shareholder vote approving its merger with Armada Acquisition Corp. II, clearing the way for the Ripple-backed firm to list on Nasdaq. Cointelegraph gave the ticker as XRPN and valued its treasury of roughly 473 million XRP at about $710 million at current prices; Decrypt said trading begins on 8 October and called it the largest pure-play XRP treasury.

Policy fights ran in parallel. The Block reported that Hyperliquid's policy group wants perpetual futures brought under MiFID II while Circle targets MiCA's bank deposit floor in filings to the European Commission's MiCA review. Cointelegraph reported a 50,000-letter campaign pressing Brussels to ease restrictions on stablecoin rewards. In the US, Cointelegraph said Illinois agreed to postpone its 0.2% crypto tax for six months following lawsuits and industry pushback.

Elsewhere, Cointelegraph and CoinDesk reported that President Trump is scheduled to host a third memecoin dinner on 22 November for the token's top 185 holders, amid corruption claims. Cointelegraph's Asia Express reported Singapore's crypto economy growing 55%, South Korea moving to legalise crypto market makers, and a Chinese spy ministry warning would-be foreign spies it is watching the blockchain.

Markets closed quietly against that backdrop. Bitcoin stood at $84,841.67, up 1.51% over 24 hours, and Ether at $2,705.30, up 0.77%, while XRP traded at $1.49. What to watch: the comment and exit path for the SEC proposal, the EU's MiCA review responses, and Evernorth's 8 October debut.