US SEC Chair Paul Atkins announced plans for more crypto asset regulations, highlighting a new proposal on crypto custody. This is part of an effort to modernize rules and establish the US as the global leader and crypto capital of the world.
The US Securities and Exchange Commission (SEC) plans to roll out additional regulatory proposals for crypto assets, Chair Paul Atkins said, stressing that the regulator’s work to develop a comprehensive framework for the sector is “not finished.”
Atkins said in a post on X the SEC’s latest proposal on crypto custody is part of a broader effort to modernise the regulatory framework for digital assets and provide greater clarity to investment advisers and funds. “This week, the Commission proposed to close a gap that has left investment advisers and funds guessing how to effect lawful custody of an asset class that their clients increasingly demand,” he said, stressing, “This is another significant step toward bringing our regulatory frameworks into the modern era and fulfilling our commitment to cement the United States as the crypto capital of the world.”
Modernizing Outdated Regulations
The US SEC has proposed new rules to make it easier for investment advisers and regulated funds to hold crypto assets for clients, setting out a dedicated framework for crypto custody. The SEC Chair further highlighted that the crypto asset market has grown from a niche segment following the advent of Bitcoin in 2008 into a multi-trillion-dollar asset class, while existing “rules and regulations have not kept pace.”
Hence, according to Atkins, the latest 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—and replacing the grey of uncertainty created by custody rules crafted for a bygone era.” He further noted that several provisions governing custody under the Investment Advisers Act of 1940 and the Investment Company Act of 1940 predate the internet and primarily contemplate the custody and safekeeping of traditional assets.
Atkins stressed that the existing rules require the use of permitted custodians; however, the custody services for new crypto assets can take months to become available. “…we will further modernize our regulatory framework, and we will help ensure the United States remains the global leader in crypto innovation for decades to come,” he added.
Innovation and Future Steps
He said the proposal would also implement a number of long-needed modernizations of the current investment adviser and regulated fund custody rules. Atkins also highlighted the SEC’s recently introduced Innovation Exemption, which seeks to provide a pathway for trading tokenised National Market System (NMS) stocks. “These efforts acknowledge that blockchain technology holds the potential to modernize the financial system, and that onchain markets should not be relegated offshore or forced into ill-fitting regulatory models,” he said.
Signalling further regulatory action, Atkins added, “Our work is not finished. More regulatory proposals are on the horizon, and I look forward to continuing to help President Trump cement the United States as the crypto capital of the world.” (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)