SEC Chair Paul Atkins Vows Further Crypto Regulatory Proposals

US Securities and Exchange Commission (SEC) Chair Paul Atkins announced that the regulator's work on crypto regulatory frameworks is 'not finished.' He stated that the SEC plans to roll out additional proposals for crypto assets, building on the recent proposal on crypto custody.

The latest proposal aims to provide a clear regulatory framework for the custody of crypto assets, making it easier for investment advisers and regulated funds to hold these assets for clients. The existing rules and regulations have not kept pace with the growth of the crypto market, which has expanded from a niche segment following the advent of Bitcoin in 2008 into a multi-trillion-dollar asset class.

Atkins emphasized that the proposal would give investment advisers and funds a compliant pathway for crypto custody, replacing the uncertainty created by existing rules. He 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.