SEC Chair Paul S. Atkins has introduced sweeping proposals to overhaul cryptocurrency custody and trading regulations, targeting enhanced institutional participation and market efficiency. The initiative aims to modernize frameworks surrounding digital assets through two key regulatory updates.
Firstly, the commission seeks to establish contemporary standards for secure and compliant cryptocurrency custody solutions, addressing institutional security requirements for digital asset holdings. Concurrently, the SEC will update National Market System Rules to enable integrated trading frameworks where crypto securities and traditional securities can operate under parallel compliance protocols.
Commissioner Hester Peirce emphasized the critical role of these reforms in bolstering liquidity and capital inflows into the cryptocurrency ecosystem. Bitcoin underscores this momentum, maintaining a dominant position with prices above $118,000 and a market capitalization exceeding $2.36 trillion as of July 31, 2025.
The regulatory adjustments are designed to harmonize financial innovation with investor protection measures, creating a pathway for broader cryptocurrency adoption within institutional portfolios and traditional market infrastructure.