New SEC crypto custody rule may push small advisers out, favor large firms

• —Modeled annual cost is $433,833 per adviser, including a $376,000 independent control report
• —Initial internal compliance costs are $173,499, with $57,833 recurring annually
• —The SEC assumes only 823 of 16,442 registered advisers, or 5%, would use the option
• —Advisers must confirm at least quarterly that no qualified custodian is available