SEC Chair Paul Atkins Voices Support for Self-Custody of Crypto Assets As ‘Foundational American Value’

The U.S. Securities and Exchange Commission (SEC) has a new chair who is showing support for crypto self-custody. Paul Atkins, who took over as SEC Chair in April, recently participated in the Commission’s Crypto Task Force Roundtable on Decentralized Finance. During the event, Atkins emphasized the importance of self-custody in digital wallets within blockchain technology.

Atkins stated that self-custody of private property is a fundamental American value that should not be compromised when engaging online. He believes that market participants should have more flexibility in self-custody of crypto assets, especially in cases where intermediaries add unnecessary transaction costs or limit the ability to partake in activities like staking.

The new chair’s stance is notably different from his predecessor, Gary Gensler, who pursued enforcement actions against several prominent crypto firms. Since Gensler’s departure in January, many of these cases have been resolved.

Atkins highlighted the need to support innovation in self-custodial digital wallets and other on-chain technologies. He criticized the previous administration for hindering progress in this area by suggesting that developers of such software could be conducting brokerage activities. Atkins argued that holding developers liable for the actions of users would be akin to blaming a car manufacturer for a traffic violation committed by a driver.

This shift in approach at the SEC is a positive sign for the crypto industry, as it indicates a willingness to embrace technological advancements and support innovation in the field of digital assets.

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Image credit: Midjourney.