Peirce Urges SEC to Clear Up Crypto Custody Confusion
At the SEC’s roundtable on crypto custody, Commissioner Hester Peirce highlighted how unclear regulations are stalling innovation. She compared the current regulatory environment to a game kids play: The Floor is Lava. “In crypto, we’ve played our own version of The Floor is Lava. The burning lava is legal uncertainty,” she said, describing how firms are forced to leap over legal gray areas to avoid potential violations.
Peirce argued that current rules often don’t fit the reality of crypto markets, especially around self-custody, smart contracts, and tokenized securities. She warned that outdated rules could push investors toward less safe alternatives and prevent advisors from acting in their clients’ best interests.
She concluded by urging the SEC to update and clarify crypto-specific rules to support innovation while ensuring investor protection.
Custody rules protect investors’ money : Caroline Crenshaw
Commissioner Caroline Crenshaw emphasized the necessity of robust, bespoke custody rules for crypto assets. “Crypto presents unique risks that demand equally unique protections,” she said, citing issues such as hacks, protocol failure, and smart contract bugs.
Crenshaw asked if an independent crypto custody regime could be equal to the current SEC rules, which she labeled as the “gold standard” of investor protection. She cautioned, “If we lower the bar, we risk exposing investors to serious harm.”
She also expressed concern about investment advisers keeping crypto assets in their own possession. “Are most advisers operationally able to safely practice self-custody of crypto assets?” she asked, citing the risk of abuse or mismanagement.
Crenshaw called for cooperation with other regulators and more transparent disclosures to investors. Her bottom line: crypto innovation does not have to come at the expense of investor protection.
Are Changes Needed for the Custody Rules? : Paul Atkins
As the SEC chair delivers his keynote, he said that todays round table is focused on the challenges that SEC registrants face when attempting to safely custody crypto assets for their customers in compliance with the federal securities laws.
Are changes needed to custody rules under the exchange act, advisors act, investor company act
He highlights that the current regulation will be changed quickly, and insights from anyone are widely appreciated.
Chairman Paul Atkins Take the stage
Chairman Atkins thanks the interim Chairman Mark Udeya to start this crypto round table, and other sec commissioners to help this happen along with the expert panel that have committed to provide their time knowledge and experience.
He showed eagerness to work and tackle long pressing issues such as regulatory treatment of the digital assets.
Paul expects huge benefits from the blockchain technology because of its innovation, transparency, risk management, and cost efficiency. he looks forward to engaging with pro-crypto personalities. Moreover, to fulfill Trump’s dream of a rational crypto-fit regulation over a period.
Two Separate Panel to discuss the Agenda
As the Round table begins Richard Gabbert welcomed chairman Paul Atkins to his first live even after taking the helm and has revealed that today there are going to be two panels.
One panel will deal with broker dealer custody, and other dealing with custody under the 40 acts. Both feature experts with experience studying this issues.
T-0 Minutes To SEC 3rd Crypto Roundtable
Alright, folks, settle in! We are now at T-0 Minutes to the start of the 3rd SEC Crypto Roundtable here in Washington D.C.!
The room is filling up, the panelists are getting ready, and anticipation is high. In just moments, SEC Chairman Paul Atkins is expected to step up and deliver his opening remarks for this critical discussion on crypto custody.
Stay tuned – things are about to get very interesting!
Crypto market is net positive ahead of the SEC Roundtable
And now for a look at the market reaction heading into this key discussion… We’re seeing a distinctly net positive trend across the cryptocurrency market ahead of the SEC’s custody roundtable!
Just looking at some of the majors:
- Bitcoin (BTC) is showing a solid gain, up 2% on the day.
- Ethereum (ETH) is performing close by, increasing by 1.75%.
- XRP is the only in red, 0.8%.
- BNB sees a healthy rise of 0.8%.
- And Solana (SOL) is posting a notable gain of 0.9%.
zoom out to the broader market picture, and the sentiment remains bullish:
The global crypto market cap currently stands at a significant $2.99 Trillion, reflecting a 2.31% increase over the last 24 hours.
Trading volume is also picking up, with the total crypto market volume over the past day hitting $104.9 Billion, a 9.73% increase.
Meet today’s panel for the second SEC crypto round table
For its 3d crypto roundtable SEC has brought in leaders of top crypto custody service providers to discuss how the custody services of digital assets and how the process works. Let’s meet the panel.
Moderator:
- Zach Zweihorn, Davis Polk & Wardwell LLP
Panelists:
- Tammy Weinrib, Copper Technologies Ltd.
- Jason Allegrante, Fireblocks
- Rachel Anderika, Anchorage Digital Bank
- Terrence Dempsey, Fidelity Digital Asset Services, LLC
- Mark Greenberg, Kraken
- Veronica McGregor, Exodus Movement, Inc.
- Baylor Myers, BitGo, Inc.
- Brandon Russell, Etana Custody Inc.
3rd SEC Crypto Roundtable: Chairman Paul Atkins to Attend
The 3rd SEC Crypto Roundtable is ready to begin at 1 PM, and all eyes are on the new SEC chairman Paul Atkins. He is confirmed to join the discussion and to deliver a key note speech prior to the panel discussion.
The focus of today’s crucial discussion is “Know Your Custodian: Key Considerations for Crypto Custody.”
This is going to be Atkins first public remarks since taking the helm, and his perspective on crypto custody is expected to set the tone for the agency’s approach moving forward.
