SEC Chair Atkins Issues Statement on Crypto Asset Custody Rules
SEC Chairman Paul S. Atkins has released a statement addressing proposed custody rules for crypto assets under two key federal investment laws.
Securities and Exchange Commission Chairman Paul S. Atkins issued a formal statement regarding a regulatory proposal aimed at clarifying how crypto assets must be held in custody under the Investment Advisers Act and the Investment Company Act, according to the agency's official record of speeches and statements.
The proposal targets a longstanding gap in federal securities regulation, where existing custody frameworks were drafted long before digital assets emerged as a significant investment category. Investment advisers and registered investment companies face distinct obligations under each statute, and the question of how to properly safeguard client crypto holdings has remained unsettled under current rules.
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Atkins, who took the helm of the SEC under the current administration, has signaled a notably different posture toward digital asset regulation compared to his predecessor. His engagement with the custody question reflects a broader agency effort to develop clearer, workable standards for crypto markets rather than relying primarily on enforcement actions to shape industry practice.
Custody of digital assets is considered a foundational compliance issue because improper safekeeping can expose investors to loss through theft, insolvency of custodians, or operational failures. Bringing crypto custody explicitly within the scope of the Investment Advisers Act and the Investment Company Act would extend well-established investor protection principles to an asset class that has largely operated outside those guardrails.
The full text of Chairman Atkins's statement and any accompanying proposal details are available directly from the SEC. Continue reading at Speeches and Statements.
