SEC Signals More US Crypto Regulation and Custody Rules
SEC Chair Paul Atkins said the agency will propose more crypto regulation and digital-asset rules as the United States seeks to remain a global cryptocurrency hub. The SEC is reviewing custody requirements created in 1940 for traditional assets, arguing that current infrastructure can lag behind newly launched digital assets.
The custody plan is part of a broader SEC crypto regulation programme developed since 2025. Other proposals include Regulation Crypto Assets, rules for tokenised securities and an Innovation Exemption. The proposed five-year sandbox could allow US stocks to trade on decentralised exchanges and through liquidity providers.
The latest push follows the US Senate’s failure to pass the CLARITY Act. Former SEC internet-enforcement chief John Reed Stark said the agency could be exceeding its authority and bypassing Congress. For crypto traders, the SEC crypto regulation agenda may improve long-term legal clarity and institutional confidence, but it could create short-term volatility and higher compliance costs for issuers, custodians and trading platforms.
Neutral
The news does not directly target a specific cryptocurrency, so its immediate price effect is likely to be neutral. In the short term, traders may react cautiously because further SEC proposals could increase uncertainty over enforcement, custody standards and the agency’s legal authority. This may temporarily weigh on risk appetite across digital-asset markets.
Over the longer term, clearer crypto regulation could support institutional participation, improve custody infrastructure and strengthen market confidence. However, the timing and substance of the proposals remain uncertain, while opposition from lawmakers and former SEC officials could delay implementation or trigger legal challenges. The likely result is mixed sector-wide sentiment rather than a clear bullish or bearish signal for any individual token.