SEC Chair: Comprehensive Reform of Cryptocurrency Broker Rules Possible

BlockBeats News, May 13th, U.S. Securities and Exchange Commission (SEC) Chairman Atkins said on Monday local time that the current framework allowing brokers to serve as digital asset custodians may need to be scrapped and replaced, and revealed that they are considering granting hedge funds the ability to self-custody crypto assets. Currently, only two institutions in the U.S. have obtained the "Special Purpose Broker-Dealer" license.

Atkins pointed out at a digital asset roundtable that this downturn in response is due to "significant restrictions" set by the previous administration. He emphasized: "Broker-dealers were never banned from custodying non-securities crypto assets or security tokens." However, he also noted that the SEC may need to clarify how customer protection and capital requirements apply to such institutions. Atkins has asked SEC staff to explore creating a new regulatory path for cryptocurrency, including researching whether to amend custody rules to allow hedge funds, trading firms, and investment advisors to self-custody digital assets. (Financial News)