SEC to Host Second Crypto Roundtable, Focus on Custody Rules and Regulatory Gaps

The U.S. Securities and Exchange Commission (SEC) will hold its second crypto policy roundtable this Friday, focusing on digital asset custody and existing regulatory gaps. This event is part of a four-part series launched by the SEC’s Crypto Task Force, aiming to clarify and modernize crypto asset regulations.

New SEC Chairman Paul S. Atkins, sworn in earlier this week, will deliver opening remarks. Known for his market-friendly stance, Atkins has pledged to bring greater regulatory clarity to the digital asset industry, marking a shift from his predecessor’s enforcement-heavy approach.

Friday’s roundtable features two expert panels. The first will explore "Custody Through Broker-Dealers and Beyond," while the second will examine "Investment Adviser and Investment Company Custody." Participants include representatives from Fireblocks, Anchorage Digital Bank, Fidelity Digital Assets, Kraken, and BitGo, alongside legal and academic experts.

Custody remains a critical issue for crypto regulation. Current SEC rules require investment advisers to use a “qualified custodian,” typically a bank or broker-dealer—an arrangement that poses challenges for crypto-native firms. A 2023 SEC proposal aimed to update custody requirements but drew criticism for lacking crypto-specific solutions and hindering compliance.

Panelists like Neel Maitra of Dechert LLP and Justin Browder of Simpson Thacher have previously criticized the SEC’s rigid stance, highlighting the lack of infrastructure and qualified custodians for crypto assets. They argue that the current framework forces advisers to choose between investor demand and regulatory compliance.

This roundtable follows an earlier session on crypto trading held on April 11. Two additional sessions are scheduled: tokenization on May 12 and decentralized finance (DeFi) on June 6, as the SEC continues gathering industry input to shape its evolving crypto regulation strategy.