SEC Roundtable on Cryptocurrency Policy
The U.S. Securities and Exchange Commission (SEC) is set to hold its second roundtable on cryptocurrency policy this coming Friday, focusing on regulations concerning the custody of crypto assets and identifying existing regulatory shortcomings.
Overview of the Roundtable Series
This roundtable is part of a four-part series initiated by the SEC’s Crypto Task Force, which aims to gather diverse opinions and evaluate different policy approaches for the oversight of digital assets. The opening session will feature remarks from high-ranking SEC officials, including the newly appointed Chairman Paul S. Atkins, who has made it his mission to clarify the landscape of regulations governing the cryptocurrency sector.
Agenda and Discussions
The agenda includes two distinct panel discussions:
- Custody Through Broker-Dealers and Beyond
- Investment Adviser and Investment Company Custody
The topic of how to securely store crypto assets has emerged as a contentious issue in U.S. financial regulations. Presently, SEC guidelines require that investment advisers place both client funds and digital assets with authorized custodians, typically banks or broker-dealers. However, few existing firms have adapted to meet these custodial requirements for cryptocurrencies, necessitating specialized technologies and around-the-clock trading services.
In 2023, the SEC introduced a proposal aimed at revising these custody regulations, but it has faced backlash for not offering workable solutions tailored for firms operating exclusively within the crypto space.
Confirmed Speakers and Expert Opinions
Among the confirmed speakers for this roundtable are representatives from prominent organizations within the finance and crypto sectors, including Fireblocks, Anchorage Digital Bank, Fidelity Digital Assets, Kraken, and BitGo. The discussion will also welcome legal and academic experts, many of whom have previously expressed strong opinions on the current state of crypto custody in the U.S.
Neel Maitra, a legal expert from Dechert LLP, previously highlighted custody as “the single greatest question facing crypto market participants,” pointing to investors’ needs for both accessibility and secure storage.
Additionally, Justin Browder from Simpson Thacher criticized the SEC’s prior regulatory framework, suggesting it forces advisers into a dilemma: choosing between client demands and adhering to compliance regulations. He emphasized the scarcity of custodians capable of offering viable solutions for crypto assets.
Continuation of the Series
This session follows an initial roundtable that focused on cryptocurrency trading, conducted on April 11. The series will continue with additional discussions planned on tokenization on May 12 and decentralized finance on June 6.
