SEC Chair Proposes Overhaul of Digital Asset Custody Rules

Securities and Exchange Commission (SEC) Chairman Paul Atkins has signaled a potential shift in how brokers handle the custody of digital assets. At a recent digital asset roundtable, he suggested that the existing framework for brokers acting as custodians may be outdated and require a complete overhaul, particularly considering limited adoption under current rules. Only two firms have received special-purpose broker-dealer designation from the SEC, indicating significant limitations stemming from policies established during the previous administration.