SEC Mobilizes to Update Crypto Custody Rules Under Trump-Era Initiative

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 Project Crypto—a Trump administration initiative to bolster America's crypto competitiveness.

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