Atkins highlighted that this regulatory initiative was not isolated, but another element of a comprehensive crypto asset regulatory approach that the commission had been applying to the crypto industry since 2025, when it closed the era of crypto regulation by enforcement as former Chair Gary Gensler left the institution.

Before this crypto custody framework, the SEC presented two landmark regulatory initiatives for the crypto industry: Regulation Crypto Assets, which creates a tailored offering regime for crypto assets as investment contracts, and the Innovation Exemption, which establishes a 5-year sandbox to allow the trading of national stocks in decentralized exchanges and liquidity providers.

“These efforts acknowledge that…