The U.S. Securities and Exchange Commission (SEC) is gearing up to reassess its approach to digital asset custody, as revealed by SEC Chair Paul Atkins on August 15, 2025. In a bid to make the U.S. a more crypto-friendly nation, Atkins announced the agency’s commitment to updating longstanding regulations that govern broker-dealers, asset managers, and investment advisers handling cryptocurrency transactions.
SEC’s Crypto Mobilization
In an interview on Fox Business’ “Mornings With Maria,” Atkins unveiled Project Crypto, a new initiative aimed at aligning the SEC’s oversight with the rapid evolution of the digital asset landscape. “We’re mobilizing at the SEC all our different divisions and offices,” Atkins stated, emphasizing the need for secure storage solutions for crypto assets. “We don’t want the crypto assets to be on some flash drive in somebody’s drawer,” he added, highlighting the agency’s focus on providing certainty through regulatory adjustments. As explored in our recent coverage of SEC’s focus on ‘clear’ crypto regulations after Ripple case, this initiative reflects a broader commitment to regulatory transparency.
This initiative is not just about modernizing SEC rules; it’s about creating a robust framework underpinned by Congressional legislation, such as the already-signed GENIUS Act. These efforts seek to provide clarity for market participants navigating the often murky waters of digital asset management.
The Implications for Real-Time Payments
Atkins also touched upon the potential impact of a recent district court ruling regarding debit card interchange fees. According to him, the decision could pave the way for real-time or instant payment networks—a move that could revolutionize transaction settlements. “Moving towards instant payment settlements would be ideal,” he noted, suggesting that blockchain technology might bolster such systems. However, Atkins cautioned that a built-in delay might be necessary to address potential errors, acknowledging the inherent risks of rapid transaction clearance.
The longer it takes to finalize transactions, the more vulnerable the system becomes to unforeseen events, such as black swan occurrences. This sentiment reflects the SEC’s cautious but progressive stance on integrating blockchain technology into traditional financial systems. For a deeper dive into the regulatory implications, see our coverage of a16z and DeFi Education Fund’s call for SEC Safe Harbor for DEX, Crypto Wallet Devs.
Historical Context and Market Trends
The SEC’s renewed focus on cryptocurrency custody and instant payments comes amid a broader industry push for regulatory clarity. Historically, the SEC has taken a conservative approach to digital assets, often erring on the side of caution. However, with the cryptocurrency market now a significant player in the global financial ecosystem, the agency appears to be shifting its stance.
The GENIUS Act and other legislative efforts underscore Congress’s recognition of cryptocurrency’s growing importance. These initiatives aim to establish a more defined regulatory environment, fostering innovation while protecting investors.
Looking Ahead
As the SEC embarks on this regulatory overhaul, several questions remain unanswered. How will these changes impact existing market players? Will the U.S. emerge as a global leader in crypto regulation? These are the uncertainties that stakeholders will be watching closely.
The crypto community is poised for the SEC’s next moves. With Project Crypto in full swing, market participants are hopeful for a future where digital assets are managed with the same rigor and reliability as traditional financial instruments. The conversation continues, with key industry voices set to gather in Washington, D.C., on September 10 for CoinDesk’s Policy & Regulation event.
In the meantime, the SEC’s efforts to modernize its regulatory framework signal a promising shift towards embracing innovation while ensuring market stability—a balancing act that could redefine the landscape of digital asset regulation in the U.S.
Source
This article is based on: Trump’s SEC Chair Says Agency Is ‘Mobilizing’ to Update Custody, Other Guidance
Further Reading
Deepen your understanding with these related articles:
- Binance and BBVA Partner to Enhance Off-Exchange Crypto Custody in Spain
- Morning Minute: SEC Gives Crypto Staking The Green Light
- A16z, DeFi Group Pitch U.S. SEC on Safe Harbor for DeFi Apps
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
