SEC Chair Champions Crypto Self-Custody in New Rules

SEC Chair Pushes Crypto Self-Custody in New Regulatory Framework

The U.S. Securities and Exchange Commission has proposed a new set of rules called “Regulation Crypto Assets”, aiming to create what the agency described as a clearer, “fit-for-purpose” framework for certain investment contracts involving crypto assets.

In a statement accompanying the proposal, SEC Chair Paul Atkins said the effort is intended to give crypto entrepreneurs and market participants “clear pathways to raise capital under the federal securities laws,” while Congress works toward a longer-term statutory framework for crypto market structure.

The SEC said the proposal follows the Commission’s March 2026 interpretation that clarified how federal securities laws apply to certain crypto assets and transactions involving crypto assets. The agency framed the latest move as a step toward replacing parts of the industry’s long-running regulatory uncertainty with more explicit rules.

Alongside the broader rulemaking push, Atkins has also asked SEC staff to develop a proposal that would allow investment advisers to self-custody crypto assets under certain conditions. The plan would also permit state trust companies to serve as custodians for advisers and regulated funds, potentially expanding the set of entities that can provide custody services in a compliant structure.

The SEC’s messaging emphasized that the initiative is meant to provide “knowable rules” without signaling a pullback from enforcement. Atkins underscored that fraud and misleading conduct involving crypto assets would remain an enforcement focus even as the agency builds out a more defined framework.

The broader context includes a shift in recent years from primarily enforcement-led oversight toward more formal rulemaking and interpretive guidance. According to the materials cited around the proposal, SEC crypto policy work accelerated after the creation of an SEC Crypto Task Force in 2025, and later evolved into a joint SEC-CFTC effort that produced a token taxonomy interpretation in March 2026.

• What happened: The SEC proposed “Regulation Crypto Assets,” following a March 2026 interpretation on how securities laws apply to certain crypto assets and transactions.
• Why it matters: The proposal is positioned as a clearer route for compliant capital raising and market participation under existing securities laws.
• Custody angle: Atkins has asked staff to explore allowing advisers to self-custody crypto under conditions, and to permit state trust companies to act as custodians for advisers and regulated funds.
• Enforcement remains: The SEC signaled continued focus on fraud, disclosures, custody practices, recordkeeping, and supervision even as rules become more explicit.