SEC Chairman Paul Atkins Explores Crypto Custody Regulations – Coincu

Paul Atkins, newly appointed SEC Chairman, hosted a roundtable on April 25, 2025, in Washington, D.C., addressing crypto custody under federal securities laws.

Focus was on examining custody challenges, possibly altering rules under the Securities Exchange Act to accommodate crypto assets.

Paul Atkins’ Regulatory Approach

Paul Atkins’ appointment as SEC Chairman has resulted in renewed attention towards crypto asset custody regulations. Atkins, known for his pro-market approach, intends to forge clear rules of the road to promote investment and prevent fraud. His inaugural roundtable marks a significant step towards achieving this objective.

“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, Chairman, U.S. Securities and Exchange Commission Source

Changes in custody rules, if implemented, could have immediate implications for crypto custody
providers and broker-dealers across the United States. Market players seeking clarity in handling digital assets
may see opportunities arising from such regulatory
shifts.

During the discussion, Atkins emphasized the SEC’s willingness to adapt existing rules rather than waiting for
new legislation. Industry participants noted a potential paradigm shift towards a more inclusive regulatory
environment, signaling a move away from the previous administration’s stance, which stressed technical
compliance.

Historical Context Challenges Gary Gensler’s Approach

Did you know? Paul Atkins’s regulatory approach differs significantly from his predecessor,
whose strict interpretation potentially excluded many platforms from custody consideration.

Historical attempts under former Chairman Gary Gensler to enforce strict custody laws faced criticism for
possibly limiting market access. In contrast, Atkins’s focus on preventing fraud over technical violations could
elevate market confidence. Industry experts suggest this new direction may enhance the U.S. crypto market’s
competitiveness, potentially fostering innovation and adherence to regulatory standards. Potential regulatory
adjustments could influence not only custodians and broker-dealers but also affect broader institutional
adoption, benefiting investors through clearer frameworks.