Crypto Custody in Focus as SEC Brings Industry Together for High-Stakes Roundtable

The US Securities and Exchange Commission (SEC) is set to hold its second crypto policy roundtable this Friday on 25 April, spotlighting the evolving challenges and regulatory uncertainties surrounding digital asset custody.

As part of a four-part series launched by the SEC’s Crypto Task Force, the session aims to gather insights from industry leaders, legal scholars, and agency officials to help shape future policy on crypto regulation.

New SEC Chairman Paul S. Atkins, sworn in earlier this week, will deliver opening remarks and is expected to reinforce his commitment to clarifying the agency’s stance on digital assets.

The roundtable will feature two panel discussions: one on “Custody Through Broker-Dealers and Beyond,” and another on “Investment Adviser and Investment Company Custody.”

Custody has become a key friction point in US crypto regulation.

Current SEC rules require investment advisers to safeguard client funds with a qualified custodian—typically a bank or broker-dealer.

However, these traditional institutions are often not equipped to handle the technical demands of crypto custody, including secure key management and 24/7 trading access.

A 2023 SEC proposal sought to modernise custody rules for digital assets, but industry stakeholders have pushed back, arguing it lacks clear, workable pathways for crypto-native firms.

Friday’s session will include voices from major players such as Fireblocks, Anchorage Digital Bank, Fidelity Digital Assets, Kraken, and BitGo, along with legal and academic experts expected to weigh in on both risks and regulatory solutions.

Key Voices at Roundtable Previously Challenged SEC’s Custody Approach

Several panelists slated to participate in the upcoming roundtable have been vocal critics of the SEC’s current stance on crypto custody.

Neel Maitra, a partner at Dechert LLP, has described custody as “the single greatest question facing crypto market participants,” pointing to the growing tension between investor demands for seamless access and the need for secure asset storage.

Justin Browder of Simpson Thacher, another confirmed participant, argued last year that the SEC’s approach effectively forces advisers to choose between meeting client expectations and complying with rigid regulatory frameworks.

“There are currently very few qualified custodians equipped to handle crypto-assets,” he noted, underscoring the structural challenges facing advisers in the space.

This custody-focused session follows the SEC’s 11 April roundtable on crypto trading.

Two additional sessions are scheduled: one on tokenisation on 12 May, and another on decentralised finance (DeFi) on 6 June.

Together, these discussions aim to probe critical regulatory gaps and shape a more coherent framework for the digital asset ecosystem.

Will the upcoming dialogue bring much-needed clarity—or leave the sector grappling with even more uncertainty?