Under advisement: In a fresh push toward creating a set of regulatory rules for crypto without new laws from Congress, the U.S. Securities and Exchange Commission (SEC) has proposed a regulatory framework for the custody of cryptocurrencies by investment advisers and regulated funds. - "Since the advent of bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure," SEC chair Paul Atkins posted to X. "Unfortunately, our rules and regulations have not kept pace." Closing the gap: Coming as some Wall Street advisors are now recommending allocating between 2% and 5% of a portfolio to bitcoin, the proposal would address a key gap for institutional investors, where qualified custodial infrastructure may not yet exist. - The proposal would also allow cryptocurrencies to be held in self-custody under certain circumstances and allow state trust companies to serve as custodians for client and regulated fund crypto assets. Shelf awareness: SEC commissioner Hester Peirce likened the uncertainty to a regulatory “roller coaster,” saying advisers have been “gritting their teeth and holding on for dear life” while awaiting workable custody rules. "True self-custody is not the right choice for everyone, but many crypto owners prize being able to custody their own assets," Peirce said in a statement, adding she would have preferred the term “shelf-custody” to distinguish adviser custody from situations in which investors custody their own assets without intermediation." - Peirce, whose last day at the SEC is today after almost nine years in the role, told Bloomberg this week that the SEC has "turned a corner" on crypto. What's next? Atkins added that "more regulatory proposals are on the horizon" and that he looks "forward to continuing to help president Trump cement the United States as the crypto capital of the world." Between the lines: Some now think that the crypto market may actually be better off without the Clarity Act and Congress, pointing to the market's rally since mid-September.

⚜️ Gold may be entering its golden years as institutional investors increasingly hold bitcoin alongside it, according to a report from crypto asset manager Bitwise that found no institutions reduced their crypto allocations through this year's bear market, while several bought more. - The report surveyed senior investors at 15 of the world's largest institutions, spanning endowments, foundations, public pension funds, multi-family offices, investment consultants, sovereign wealth funds, and public companies. 💬 “We could be having this conversation in 10 years and we’re telling you we gave up on gold and it’s all bitcoin now," one anonymous money manager told Bitwise researchers, potentially lining bitcoin up to shoulder gold's $30 trillion mantle. - The report also found that institutional crypto holders don't watch short-term price moves, but would consider selling on "thesis failure, regulatory reversal, or an industry-wide credibility crisis." 🥇 The institutions were generally found to hold chiefly bitcoin, with every institution that owns crypto owning bitcoin, while "ethereum and solana are held, but in smaller positions, on shorter horizons, and with explicit exit conditions tied to value accrual." - Investment allocations ranged from 0.5% to 13% of investable assets, with most between 1% and 2%.