SEC Unveils Crypto Custody Framework as Weak Jobs Data Lifts Bitcoin Toward $87,000

Two developments out of the United States shaped the crypto market on Friday, October 2, 2026. Regulators moved ahead with a long-awaited custody proposal for digital assets, and a disappointing labor market report gave Bitcoin an unexpected lift.

SEC Proposes a Custody Path for Crypto Assets

The U.S. Securities and Exchange Commission proposed new rules on Thursday that would create a dedicated framework for how registered investment advisers and regulated funds hold crypto assets on behalf of clients. The roughly 760-page proposal updates custody requirements under the Investment Advisers Act and the Investment Company Act, both dating back to 1940.

SEC Chairman Paul Atkins said the existing rules were written for traditional assets and left firms without a clear compliant route for crypto. The new framework is meant to fill that gap.

What the Proposal Would Change

Two elements stand out. First, state trust companies would be eligible to act as custodians for client and fund crypto holdings. Second, advisers could self-custody crypto in limited situations, mainly when no permitted custodian is available for a particular asset. SEC Commissioner Hester Peirce noted that this refers to advisers acting as custodians, not to individual investors controlling their own keys.

The package also touches audit requirements for advisers and custodial arrangements with broker-dealers for regulated funds. The proposal is not yet in force. Once it is published in the Federal Register, the public will have 60 days to submit comments. It arrives as broader crypto market-structure legislation has stalled in Congress, leaving agencies to move forward on their own.

Weak Jobs Report Surprises Markets

Hours later, the Bureau of Labor Statistics reported that U.S. employers added only 29,000 jobs in September, far below forecasts of roughly 85,000 to 90,000. The unemployment rate rose to 4.2% from 4.1%. August job growth was also revised lower, to 133,000 from the initial 162,000 estimate.

Why Bitcoin Rose on Bad News

Traders read the soft data as a reason for the Federal Reserve to hold interest rates steady at its October meeting. The 10-year Treasury yield eased by about seven basis points and the dollar weakened, conditions that typically support risk assets. Bitcoin, already trading higher before the release, climbed to just under $87,000, a level that has capped rallies over the past two weeks. Ether traded near $2,750 earlier in the session.

What to Watch Next

The SEC proposal could widen institutional access to crypto if it is finalized, but the comment period and possible revisions mean it is months away from taking effect. In the short term, Bitcoin's ability to break above the $87,000 to $87,500 zone will depend largely on Treasury yields and upcoming Fed signals.

This article is for informational purposes only and does not constitute financial advice.