SEC Chair Backs Self-Custody in Major Regulatory Shift

- Crypto self-custody backed by SEC Chair. - Innovation focus; regulatory guidance to be explored. On June 9, 2025, The Block reported that SEC Chairman Paul Atkins expressed support for self-custody of crypto assets. Atkins spoke at the SEC’s final Crypto Task Force Roundtable, titled "DeFi and the American Spirit." During this event on June 9, SEC Chairman Paul Atkins, speaking at the SEC’s final Crypto Task Force Roundtable, titled "DeFi and the American Spirit," declared the right to self-custody crypto assets a "foundational American value." The roundtable addressed DeFi and regulatory practices, and Atkins' comments mark a notable departure from previous SEC stances, indicating a more welcoming approach to the cryptocurrency industry. Highlighting the importance of innovation, Atkins also criticized outdated regulations that hinder technological advancements. Consequently, he directed SEC staff to explore further guidance or rulemaking. In addition, Atkins suggested an "innovation exemption" framework, which aims to expedite the market entry of new on-chain products and services. These statements from Atkins were also noted by multiple industry outlets. For instance, on June 9, CoinGape reported on his supportive stance regarding self-custody. On the same day, CryptoSlate highlighted his comments, and also on June 9, Binance News reported on his views on broader regulatory openness. Furthermore, according to a statement on the SEC's official website, also on June 9, SEC Chairman Paul Atkins reiterated his commitment to provide market participants with increased flexibility to self-custody crypto assets. This flexibility is particularly important where unnecessary intermediation costs or restrictions impede activities like staking. This development indicates a potential regulatory shift under the current administration, which could foster a more innovation-friendly environment within the crypto industry.