SEC Pledges Further Crypto Regulation to Keep Markets Onshore

SEC Chair Paul Atkins has reaffirmed the agency's commitment to regulating the crypto industry, stating that more rule changes are on the horizon to keep digital asset markets onshore in the US.

Atkins made the comments in response to a proposal to modernize the regulation of crypto asset custody, which he argued is necessary to address the shortcomings of the 1940 custody rules that only contemplated traditional assets.

The new framework aims to provide a tailored regulatory approach for crypto assets, which have grown significantly since the SEC began allowing national stocks to trade on decentralized exchanges in a 5-year sandbox initiative.

Critics, however, have argued that the SEC is exceeding its mandate and usurping Congress's authority in the process, with some questioning the agency's authority to regulate the industry.