Crypto Custody Cage-Match: SEC's Third Policy Roundtable
Tomorrow marks the commencement of the Securities and Exchange Commission's (SEC) Crypto Custody Roundtable. Here are the key points you need to be aware of.
Locking Horns Over Crypto Custody The heat is on as the U.S. Securities and Exchange Commission (SEC) gears up for its third crypto policy roundtable, diving deep into the thorny issue of digital asset custody rules and dodging regulatory hurdles.
This installment in the SEC Crypto Task Force's ongoing series is set to take place on March 31, 2025, and will feature high-profile panels tackling crypto custody via broker-dealers and investment adviser/investment company channels.
Newly sworn-in SEC Chairman, Paul S. Atkins, will address the crowd, vowing to bring clarity and order to the crypto industry's regulatory mishmash.
The PCI (Publicly Ceremonious Instigators) reel in some heavy hitters from the crypto and finance realms, including Fireblocks, Anchorage Digital Bank, Fidelity Digital Assets, Kraken, and BitGo. Legal and scholarly eagles like Neel Maitra and Justin Browder will join the fray, bringing their distinctive discourses to the table.
Custody of crypto assets has emerged as a flashpoint in U.S. financial regulation. The existing SEC rules call for investment advisers to keep client funds and digital assets within the care of a qualified custodian – typically a bank or broker-dealer. However, these entities often can't accommodate the unique technologies and needs of the 24/7 crypto world.
In 2023, the SEC attempted to address these challenges with a proposal, but the effort drew flak for being short on practical solutions for crypto-native firms.
Neel Maitra, a partner at Dechert LLP, once declared custody to be "the single greatest question facing crypto market participants," as they grapple with reconciling investor demands for both access and safe storage. Justin Browder of Simpson Thacher echoed these concerns last year, criticizing the SEC for pitting client needs against regulatory compliance.
The roundtable follows an April 11 crypto trading-focused event and will be followed by roundtables on tokenization (May 12) and decentralized finance (June 6).
In the face of rapidly evolving crypto markets, these discussions are crucial for shaping a balanced and secure regulatory landscape.
Editor's Note: This article was updated after publication for clarity and accuracy.
[1] Decrypt's Art, Fashion, and Entertainment Hub[2] Source: CoinDesk[3] Source: SEC Press Release[4] ICO advisory firm Fairapolis[5] Source: Law360
- Amidst the preparations for the SEC's third crypto policy roundtable, the focus will be on digital asset custody rules, aiming to navigate regulatory hurdles in the crypto market.
- Scheduled for March 31, 2025, this roundtable will incorporate high-profile panels discussing crypto custody through broker-dealers and investment advisers/investment companies.
- Paul S. Atkins, the newly sworn-in SEC Chairman, will address the gathering, promising to bring clarity and order to the crypto industry's regulatory chaos.
- Participants in the roundtable will include Fireblocks, Anchorage Digital Bank, Fidelity Digital Assets, Kraken, BitGo, Neel Maitra, and Justin Browder, bringing their distinct perspectives to the table.
- Custody of crypto assets has become a central issue in U.S. financial regulation, with existing rules requiring investment advisers to secure client funds and digital assets within the care of a qualified custodian, typically a bank or broker-dealer.
- In 2023, the SEC attempted to address these challenges with a proposal, though it received criticism for being light on practical solutions for crypto-native firms.
- Neel Maitra, a partner at Dechert LLP, had previously characterized custody as "the single greatest question facing crypto market participants," as they grapple with reconciling investor demands for both access and secure storage.
- In the face of rapidly evolving crypto markets, these discussions are essential for creating a balanced and secure regulatory landscape, ensuring the growth and development of the crypto finance business and technology.
