The U.S. Securities and Exchange Commission (SEC) has announced a new initiative aimed at establishing a clear regulatory framework for cryptocurrencies and digital assets.
New Regulatory Initiative
The initiative, dubbed 'Project Crypto,' will utilize the agency's full resources to create a clear regulatory environment for digital assets. SEC Chairman Paul Atkins stated that this move followed the signing of the GENIUS Act at the White House, which is aimed at promoting the growth of crypto assets and digital payment systems. Atkins noted that these changes will help eliminate years of regulatory uncertainty in the industry.
Update on Crypto Custody Rules
A key part of the overhaul focuses on updating custody rules, which currently rely on standards written nearly a century ago. The SEC plans to revise these requirements to reflect modern blockchain-based asset management, ensuring that brokers, portfolio managers, and investment advisers can securely handle cryptocurrency holdings.
Access for Retail Investors
In addition, the SEC's roadmap will align with President Trump's recent executive order allowing 401(k) retirement plans to diversify into private equity and cryptocurrencies. Atkins stressed that retail investors deserve access to the same opportunities as major institutions, while also cautioning that protections must be in place to manage risks such as excessive fees and illiquidity.
By combining updated regulations with a push for innovation-friendly policies, the SEC hopes to create an environment where U.S. markets can lead the next wave of blockchain adoption on the global stage.
