SEC President Paul Atkins announces further crypto regulations

Securities and Exchange Commission President Paul Atkins announced further crypto regulations on Oct. 2, stating that the agency aims to keep digital asset markets within the United States.

Modernizing 1940 Custody Rules for Digital Assets

The newly proposed custody framework updates regulations originally built exclusively for traditional financial assets. Atkins stated that blockchain technology holds the potential to modernize the financial system, and that on-chain markets should not be forced abroad or constrained by ill-fitting regulatory models. The custody initiative follows two earlier foundational regulatory efforts introduced under the commission’s post-2025 approach.

Those prior initiatives include Regulation Crypto Assets, which creates a tailored offering regime for tokens structured as investment contracts. They also include the Innovation Exemption, establishing a five-year sandbox that permits national securities to trade through decentralized exchanges and liquidity providers. The shift marks a departure from the enforcement-heavy era led by former SEC President Gary Gensler.

Critics Challenge Regulatory Overreach

John Reed Stark, who previously headed the SEC Office of Internet Enforcement, argued that the agency’s current push exceeds its legal authority. Stark contended that the rulemaking contradicts more than a decade of crypto enforcement actions and usurps power belonging to Congress.

Despite the criticism, Atkins committed to pressing forward with additional agency rules. He noted that the SEC’s rulemaking agenda for the sector remains active. Other regulatory proposals are on the horizon and I look forward to continuing to help President Trump to cement the United States as the crypto capital of the world, Atkins said.

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