The SEC is preparing more crypto rules after proposing a new framework for digital asset custody. Chair Paul Atkins says the move keeps onchain markets inside the US, following the Senate's failure to pass the CLARITY Act last month.
The Securities and Exchange Commission will keep its regulatory focus on cryptocurrency and digital securities. On October 2, Chair Paul Atkins issued a statement on social media tied to a proposal to modernize regulation for crypto asset custody, pointing to the industry's relevance for the future of the US as a leader in financial markets.
Custody Rules Built for 1940, Not Digital Assets
Atkins said the new rules would modernize custody regulation that dates to 1940 and only contemplated the safekeeping of traditional assets, which did not fit the digital landscape. He framed the custody proposal as one piece of a broader approach the commission has applied to crypto since 2025, when it moved away from regulation by enforcement after former Chair Gary Gensler left the agency.
Before the custody framework, the SEC had already rolled out two other initiatives: Regulation Crypto Assets, which creates a tailored offering regime for crypto assets as investment contracts, and the Innovation Exemption, a five-year sandbox allowing national stocks to trade on decentralized exchanges and liquidity providers. The decentralized exchange sandbox lets those platforms carry listed equities alongside crypto assets.
Critics Say the SEC Is Overstepping
Not everyone backs the approach. John Reed Stark, former chief of the SEC's Office of Internet Enforcement, argues the push exceeds the agency's authority, runs counter to over a decade of enforcement on crypto assets, and usurps Congress's authority.
Atkins pushed back on the criticism, saying the agency's crypto work has not finished. According to Bitcoin News: "More regulatory proposals are on the horizon", and he said he looks forward to continuing to help President Trump cement the United States as the crypto capital of the world.
Source: Bitcoin News
Trading involves risk.
Risk Disclaimer
