SEC, Cryptocurrency custody regulation discussion…Signal of full-scale system maintenance after ETF approval

Focusing on Custody Issues, Institutional Discussions Led by SEC (Source: AP)

The United States Securities And Exchange Commission (SEC) has embarked on full-scale discussions for the institutional inclusion of the cryptocurrency industry. During the recently held roundtable meeting, various opinions were exchanged on the regulatory framework for digital assets, centered around custody issues. This is garnering more attention as increased custody demand following the approval of cryptocurrency ETF in early 2024 converges with a shift in SEC's stance following the inauguration of the Trump administration.

On April 16, SEC announced via a notice that Commissioner Hester Peirce, Commissioner Caroline Crenshaw, Acting Chairman Mark Uyeda, and Chief Of Staff Richard Gabbert of the Cryptocurrency Task Force attended the roundtable meeting. Industry figures included Kraken's Vice President Mark Greenberg, Anchorage Digital's Chief Risk Officer Rachel Andrica, and Exodus's Chief Legal Officer Veronica McGregor, along with representatives from Wisdomtree, Fidelity Digital Assets, and Fireblocks taking part in the meeting.

Commissioner Peirce stated, “Integrating cryptocurrency assets into the existing regulatory structure makes custody issues one of the most challenging tasks,” emphasizing the importance of SEC directly addressing this issue.

In this meeting, the need for digital asset custody services was a major focus, along with broker-dealer and custody issues for investment firms. Particularly, with the surge in custody demand following ETF approval, traditional financial institutions like BNY Mellon are also showing interest in the digital asset business.

Since President Trump took office in January this year, SEC has shown a more flexible attitude towards the cryptocurrency industry compared to during Former Chairman Gary Gensler's tenure. This is supported by moves to halt some enforcement actions and withdraw attempts to expand regulatory authority over digital assets in court.

This meeting is part of a continuous regulatory dialogue following the March 21 discussion on 'Determining The Security Nature Of Tokens' and the April 11 dialogue on 'Tailoring Cryptocurrency Trading Regulation'. With ongoing consultations between industry and regulatory authorities, evaluations indicate that the cryptocurrency regulatory framework within the United States is reaching a new turning point.