SEC Mobilizes to Update Crypto Custody Rules Under Trump Administration’s Directive

The U.S. Securities and Exchange Commission is actively revising custody guidelines for digital assets, targeting broker-dealers, asset managers, and investment advisers. Chair Paul Atkins emphasized the need to modernize decades-old regulations during a Fox Business interview, framing the effort as part of President Trump's push for crypto-friendly policies.

"We're mobilizing all divisions to implement working group recommendations," Atkins stated, dismissing archaic storage methods like flash drives in favor of institutional-grade security. The initiative leans on existing legislative frameworks including the GENIUS Act, though Atkins asserted the SEC's independent authority to provide regulatory clarity.

While no specific cryptocurrencies were named, the overhaul signals broader institutional acceptance of digital assets. The agency's focus on custody solutions suggests forthcoming infrastructure upgrades that could benefit major exchanges and custody providers.