SEC Tees Up Next Wave of Crypto Rules

The US Securities and Exchange Commission (SEC) plans to introduce more cryptocurrency regulatory proposals, said SEC Chair Paul Atkins. These proposals come after the agency's October 1 plan on how investment advisers and regulated funds can hold crypto assets. Atkins stated that 'our work is not finished. More regulatory proposals are on the horizon,' without specifying a release date or the subjects of the next proposals.

The SEC's crypto framework development will continue after addressing custody requirements. Atkins linked the custody proposal to earlier agency actions covering token offerings, tokenized securities, and blockchain trading. He described these measures as parts of a wider regulatory approach, with further work planned under the commission's existing authority.

The proposed framework seeks to address the gap in available custody services for digital assets. Existing rules require firms to use permitted custodians, but providers may take months to support newly developed crypto assets. The proposed changes would permit state trust companies to serve as custodians for client and fund crypto holdings, subject to conditions.

The SEC announced its custody proposal on October 1, which covers registered investment advisers, registered investment companies, and business development companies. The changes would operate under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. The agency will accept public comments for 60 days after publishing the proposing release in the Federal Register.