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SEC Aims for Transformative Crypto Rules as New Chair Signals Positive Shift

The U.S. Securities and Exchange Commission (SEC) is set to embark on significant reform of crypto custody regulations, highlighting a shift towards a more innovative and secure framework.

During a recent roundtable, SEC Commissioners urged clarity in the regulatory landscape, emphasizing the need for registered investment advisers to utilize state-chartered trust companies as qualified custodians.

Commissioner Mark T. Uyeda noted that many crypto assets do not fit the definition of funds or securities, suggesting that regulatory ambiguity has hindered investment opportunities.

He called for an overhaul of custody rules and a more competitive custodial framework that aligns with federal law.

Commissioner Caroline A. Crenshaw raised concerns about maintaining robust investor protections amid potential new regulations for digital assets.

She emphasized the importance of considering risks unique to blockchain technology, such as hacking and smart contract failures.

Commissioner Hester M. Peirce advocated for regulations that embrace the distinct characteristics of various crypto assets, promoting both investor protection and innovation.

New SEC Chair Paul Atkins echoed these sentiments, calling for clear regulatory guidelines to support blockchain innovation and improve market efficiencies.

Atkins' statements reflect a substantial deviation from the previous administration's confrontational approach towards the crypto sector, indicating a potential thaw in regulatory attitudes.

As the SEC moves towards reforming its regulatory framework, stakeholders anticipate an era characterized by clearer guidelines and enhanced security for crypto custody.