SEC Expands Crypto Rules with New Regulatory Framework

The Securities and Exchange Commission (SEC) is expanding its regulatory efforts in the crypto space, with plans to introduce additional rules for crypto and digital securities. This move follows the agency's recent proposal for a crypto-asset custody framework, aimed at updating rules established in 1940 for traditional asset custody.

The custody proposal came after the Senate failed to pass the CLARITY Act in September. The SEC's broader regulatory program, which began taking shape in 2025, includes initiatives such as Regulation Crypto Assets and an Innovation Exemption. The exemption would establish a five-year sandbox, allowing U.S. stocks to trade on decentralized exchanges and through liquidity providers.

The agency's efforts are part of a larger goal to position the United States as the world's crypto capital. The SEC plans to continue developing further regulatory proposals as part of this initiative.