The SEC will conduct its second crypto roundtable on Friday, focusing on custody rules and regulatory issues. New Chairman Paul S. Atkins will address the event. Expert panels will discuss custody challenges, with participation from top firms in the digital asset sector. This session follows an earlier roundtable and is part of a series aimed at modernising crypto regulations.
The U.S. Securities and Exchange Commission (SEC) is gearing up for its second roundtable on cryptocurrency policy this Friday. The focus will be on digital asset custody and the current regulatory gaps. This roundtable is part of a four-event series initiated by the SEC’s Crypto Task Force, which aims to refine and modernise regulations surrounding crypto assets.
Paul S. Atkins, the newly appointed SEC Chairman who just took office, will kick off the event with opening remarks. Known for his market-friendly perspective, Atkins has expressed his commitment to providing clearer regulatory guidance for the digital asset sector, marking a notable change from the previous approach characterized by strict enforcement.
This roundtable will feature two panels. The first panel will delve into “Custody Through Broker-Dealers and Beyond,” while the second will discuss “Investment Adviser and Investment Company Custody.” Notable participants include experts from Fireblocks, Anchorage Digital Bank, Fidelity Digital Assets, Kraken, and BitGo, in addition to legal and academic authorities in the field.
Custody of digital assets remains a pressing issue in the regulatory landscape. Current SEC rules demand that investment advisers engage a “qualified custodian,” which is usually a bank or broker-dealer, a requirement that poses hurdles for crypto-native firms. Earlier this year, the SEC proposed updates to custody requirements but faced pushback for not addressing crypto-specific needs and complicating compliance efforts.
During discussions, panelists such as Neel Maitra from Dechert LLP and Justin Browder from Simpson Thacher have voiced concerns about the SEC’s rigid approach. They underline the inadequate infrastructure and the scarcity of qualified custodians for crypto assets, arguing that it leaves advisers torn between meeting investor demand and staying compliant with existing regulations.
This upcoming session follows an earlier discussion about crypto trading held on April 11. The SEC has further sessions lined up: one on tokenization scheduled for May 12 and another on decentralized finance (DeFi) set for June 6. This ongoing series reflects the SEC’s effort to collect industry feedback to effectively shape its regulatory strategy for the evolving crypto landscape.
