Washington DC:
The US Securities and Exchange Commission (SEC) plans to roll out additional regulatory proposals for crypto assets, Chair Paul Atkins said, stressing that the regulator’s work to develop a comprehensive framework for the sector is “not finished.”
Atkins said in a post on X the SEC’s latest proposal on crypto custody is part of a broader effort to modernise the regulatory framework for digital assets and provide greater clarity to investment advisers and funds.
“This week, the Commission proposed to close a gap that has left investment advisers and funds guessing how to effect lawful custody of an asset class that their clients increasingly demand,” he said, stressing, “This is another significant step toward bringing our regulatory frameworks into the modern era and fulfilling our commitment to cement the United States as the crypto capital of the world.”
The SEC Chair further highlighted that the crypto asset market has grown from a niche segment following the advent of Bitcoin in 2008 into a multi-trillion-dollar asset class, while existing “rules and regulations have not kept pace.”
He further noted that several provisions governing custody under the Investment Advisers Act of 1940.
Atkins stressed that the existing rules require the use of permitted custodians; however, the custody services for new crypto assets can take months to become available. “…we will further modernize our regulatory framework, and we will help ensure the United States remains the global leader in crypto innovation for decades to come,” he added.
Atkins also highlighted the SEC’s recently introduced Innovation Exemption, which seeks to provide a pathway for trading tokenised National Market System (NMS) stocks.
“These efforts acknowledge that blockchain technology holds the potential to modernize the financial system, and that chain markets should not be relegated offshore or forced into ill-fitting regulatory models,” he said.
Signalling further regulatory action, Atkins added, “Our work is not finished. More regulatory proposals are on the horizon, and I look forward to continuing to help President Trump cement the United States as the crypto capital of the world.” - ANI
