In January 2025, then-Acting SEC Chair Mark T. Uyeda established a Crypto Task Force, with Commissioner Hester M. Peirce as its leader. The Task Force has been holding a series of roundtable discussions on the regulatory treatment of digital assets. On April 25, 2025, it held two roundtable discussions, one focused on custody by investment advisers and investment companies and another focused on broker-dealer custody. The investment adviser and investment company panel focused on the challenges of complying with the Custody Rule when investing in digital assets, potential modifications to the existing custody regime to accommodate the unique characteristics of digital assets and ways to broaden the universe of qualified custodians. This two-part series synthesizes the key takeaways from the investment adviser and investment company panel, with additional commentary from Justin L. Browder, partner at Simpson Thacher & Bartlett LLP and participant in the roundtable. This first article summarizes the Commissioners’ remarks and reviews the practical custody challenges discussed. The second article will cover potential digital asset custody models, as well as state trust companies and other entities as qualified custodians. See “Navigating Custody and Other Regulatory Issues Associated With Digital Assets” (Aug. 4, 2022).