SEC Chair Paul S. Atkins announced that the agency is preparing further regulatory proposals for the cryptocurrency sector. This follows the introduction of a new framework on October 1, 2026, which outlines updated custody standards for registered investment advisers, investment companies, and business development companies.
The proposed framework introduces two primary changes: it permits self-custody of digital assets under specific conditions and allows state trust companies to act as custodians. These measures aim to modernize recordkeeping and custody requirements, which the SEC currently views as incompatible with blockchain-based assets.
The agency intends for these regulations to encourage the development of on-chain markets within the United States. The proposal is currently in the draft stage, with a 60-day public comment period set to begin upon its publication in the Federal Register.
This initiative follows the August 18, 2026, proposal of Regulation Crypto Assets, which includes fundraising exemptions of up to $5 million over a four-year period. Meanwhile, the Clarity Act, which aimed to establish broader market frameworks, stalled in September 2026.
The SEC is currently undergoing personnel changes, with Commissioner Hester M. Peirce departing following the custody proposal. Future developments will depend on industry feedback regarding the proposed custody provisions and the content of the additional regulatory rules flagged by Atkins.
