SEC Chair Atkins Issues Statement on Crypto Custody Rules
SEC Chairman Paul S. Atkins has released a statement addressing how crypto assets should be handled under federal investment adviser and fund regulations.
Securities and Exchange Commission Chairman Paul S. Atkins issued a formal statement regarding a regulatory proposal aimed at clarifying how crypto assets should be held in custody under the Investment Advisers Act and the Investment Company Act, according to an official release from the agency.
The statement signals the SEC's continued focus on establishing clearer standards for digital asset custody, a topic that has drawn significant attention from investment advisers, fund managers, and crypto firms navigating an evolving compliance landscape. Custody rules determine how client assets must be safeguarded, and their application to digital assets has remained a key point of regulatory uncertainty.
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Atkins, who took the helm of the SEC following his confirmation, has indicated a posture toward providing greater regulatory clarity for the crypto industry. His engagement with the custody question suggests the agency is moving to address longstanding ambiguity that has complicated how registered investment advisers manage and report digital asset holdings on behalf of clients.
The proposal under discussion touches on two foundational pieces of federal securities law — the Investment Advisers Act and the Investment Company Act — both of which impose specific obligations on how client and fund assets are maintained. Extending or adapting those frameworks to cover crypto assets represents a significant rulemaking undertaking with broad implications for the asset management industry.
The full scope of the proposed rule and any accompanying technical guidance were not detailed in the statement alone. Continue reading at Speeches and Statements.
