Atkins: More crypto regulation proposals are coming

On October 1, U.S. Securities and Exchange Commission Chairman Paul Atkins stated that the work on crypto regulation is not finished, and more proposals are on the way, aimed at assisting President Donald Trump in making the U.S. a hub for crypto capital.

On the same day, the Commission proposed a new framework for crypto custody, covering registered investment advisors, investment companies, and business development companies, providing clients with a compliance path for holding crypto assets that previously did not exist. The proposal allows for some self-custody and permits state trust companies to act as custodians, while also revising decades-old rules regarding advisors and regulated fund custody, clarifying record-keeping and audit requirements.

Atkins noted that since the emergence of Bitcoin in 2008, crypto has grown from a niche category to a multi-trillion-dollar market, and the old rules have not kept pace, making it difficult for advisors to comply when offering crypto-related investments. The proposal will be open for public comment for 60 days after publication in the Federal Register and is not yet finalized.

This proposal follows the Senate's shelving of the Clarity Act in September. The Commission is using existing authority to advance: in December 2025, staff will issue a no-action letter regarding the tokenization pilot for custodial trust companies, in January 2026, a classification for tokenized securities will be provided, and in August, Regulation Crypto Assets was proposed to create a separate issuance system for certain investment contracts involving crypto assets, with a recent push for an innovation exemption to create a limited trading channel for tokenized national market system stocks.

The custody rules aim to address who can hold assets and how advisors can allocate crypto for clients. The crypto task force was previously led by Commissioner Hester Peirce, who has been with the Commission for eight years and issued her resignation statement on October 1. The Commodity Futures Trading Commission is also working separately to supplement market structure following the stagnation of congressional legislation.

This is a supply of rules, not a one-day buying spree. The allocators are advisors and funds looking to enter crypto, while the compliant channels for selling are state trusts and custodial banks that can enter the qualified custodian list, with self-custody provisions leaving some assets on the advisor's side. After the Clarity Act was stalled, funds will not wait for legislation but will flow to existing federal paths for custody and tokenization pilots. Beneficiaries include licensed custodians in the U.S. and issuers that can access fund channels, while those relying on regulatory gray areas in offshore trading venues are under pressure.

Atkins defines this series of actions as ending the replacement of rules with enforcement. The list of subsequent proposals has not yet been announced.

Source: Public information