A new era for U.S. crypto regulation may be underway. In a pivotal roundtable held on April 25, 2025, in Washington, D.C., Paul Atkins, the newly appointed Chairman of the U.S. Securities and Exchange Commission (SEC), placed crypto custody at the center of the regulatory conversation. The event marked his first major public initiative since assuming the role, and it delivered a clear message: the SEC is open to reform.
A New Vision for Crypto Custody
Under Atkins’ leadership, the SEC is re-evaluating how custody rules under the Securities Exchange Act can be updated to reflect the digital asset economy. Unlike his predecessor, Gary Gensler, who leaned on stringent compliance measures, Atkins has adopted a pro-market and pragmatic approach focused on investor protection and innovation.
“I will strive to protect investors from fraud, to keep politics out of how our securities laws and regulations are applied, and to advance clear rules of the road that encourage investment in our economy to the benefit of all Americans.”
— Paul Atkins, SEC Chairman
(Source: U.S. Securities and Exchange Commission)
Industry stakeholders attending the roundtable welcomed this potential shift. By exploring custody rules that accommodate the unique nature of crypto assets, Atkins signaled the possibility of adapting existing frameworks rather than creating entirely new legislation.
Implications for Custodians, Broker-Dealers, and the Market
Changes to crypto custody regulations could have wide-ranging effects on custodians, broker-dealers, and institutions seeking to enter the digital asset space. Industry insiders noted the growing urgency for clearer operational guidance, particularly for platforms managing billions in crypto holdings.
The SEC’s approach under Atkins could unlock new growth opportunities, especially if regulations shift toward risk-based models rather than rigid technical compliance.
Contrasting with Gensler’s Legacy
The move represents a stark contrast to the enforcement-heavy tenure of former SEC Chairman Gary Gensler, whose strict interpretations of custody laws faced backlash for restricting innovation and excluding crypto-native platforms from custodial roles.
Atkins’ tone favors market inclusivity, focusing on fraud prevention over technical rigidity. This philosophy could encourage broader institutional participation, reducing regulatory friction and strengthening the U.S. crypto market’s global position.
Industry Optimism and What Lies Ahead
Crypto firms and legal experts now await further clarification and potential updates to custody guidance. Should Atkins follow through on the roundtable’s tone, stakeholders may finally get the regulatory certainty they’ve long demanded.
Moreover, this development could act as a catalyst for mainstream adoption, with secure and compliant custody playing a key role in onboarding traditional investors into digital assets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
