US Regulators Push National Crypto Rules as America Chases Global Lead

Atkins Signals More Rules as SEC Advances Custody Changes

SEC Chairman Paul S. Atkins signaled further action in an Oct. 1 statement. The head of the federal securities regulator indicated more crypto regulatory proposals are coming. He argued that outdated requirements should not force onchain markets, where transactions occur on blockchains, offshore.

His remarks accompanied proposed changes to how registered investment advisers and regulated funds safeguard investor assets. The tailored custody framework would permit self-custody in certain circumstances and allow state trust companies as custodians. It also covers adviser audits and broker-dealer safekeeping services for funds.

The Sept. 17 Innovation Exemption already provides temporary, conditional relief for qualifying trading venues and liquidity providers handling tokenized stocks, shares represented on a blockchain. Access restricted to approved participants and equivalent shareholder rights are among its conditions. Federal anti-fraud and anti-manipulation provisions remain applicable.

August’s Regulation Crypto Assets would provide a one-time exemption for certain investment contract offerings of up to $5 million over four years, plus a separate route of up to $75 million per 12-month period. Investment contracts generally involve expected profits dependent on others’ efforts. Both routes would require disclosures; the larger would also demand financial statements and ongoing reporting.