U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins spotlighted on Thursday the regulator’s new proposal to create a regulatory framework for the custody of cryptocurrencies
Replacing Rules of a ‘Bygone Era’
Atkins said on X that the cryptocurrency market has grown from a “niche curiosity into a multi-trillion-dollar asset class,” but regulations have not kept pace.
“To that end, today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” the SEC’s top executive added.
Atkins said the new rules would replace the “grey of uncertainty” created by rules of a “bygone era.”
Crypto Self-Custody in the Spotlight
The proposal would allow cryptocurrencies to be held in self-custody under “certain circumstances” and permit state trust companies to act as custodians for client and regulated fund cryptocurrency assets.
The proposed changes also aim to remove barriers that can limit advisers’ ability to offer cryptocurrency-related investment advice.
SEC Commissioner Hester Peirce earlier deemed cryptocurrency self-custody a “very fundamental American right,” saying people should be free to hold assets themselves or use intermediaries.
Notably, Atkins said last month that the SEC will “act decisively” to provide regulatory clarity to cryptocurrencies, regardless of what happens with the CLARITY Act.
The SEC has already proposed a new regulation to enable cryptocurrency projects to raise money without immediate registration requirements.
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