Main Points
- SEC Roundtable Details: The SEC’s Crypto Task Force will host “Know Your Custodian: Key Considerations for Crypto Custody” on April 25, featuring top commissioners and industry experts
- Agenda Focus: Sessions cover broker-dealer custody and adviser custody, with panelists from Kraken, Anchorage, Exodus, Fidelity, Fireblocks, Copper, WisdomTree, Etana, and more
- Institutional Demand: Major banks like BNY Mellon are rapidly expanding digital‐asset custody services in response to ETF approvals and client interest
- Regulatory Easing: Acting Chair Mark Uyeda’s appointment and a pro‐crypto presidential administration signal potential shifts toward lighter custody regulations
- Global Standards: The EU’s MiCA framework has established comprehensive custody rules, creating a point of comparison for U.S. policy developments
Background: Integrating Crypto Custody into the Regulatory Framework
The SEC established its Crypto Task Force in early 2025 to address emerging digital asset challenges, from tradability to custody. In its April 16 press release, the agency emphasized that “custody issues… are some of the most challenging as we seek to integrate crypto assets into our regulatory structure,” highlighting SEC Commissioner Hester Peirce’s leadership of this initiative. This roundtable follows earlier discussions on token classification (March 21) and regulatory design for trading venues (April 11), demonstrating the Task Force’s methodical approach to building a cohesive policy framework for digital assets.
Panel Lineup and Agenda Highlights
The “Know Your Custodian” event will convene at the SEC’s Washington, D.C., headquarters from 1 p.m. to 5 p.m. (doors open at noon) and is open to public attendance via webcast without prior registration. The agenda is divided into two sessions:
- Custody Through Broker‑Dealers and Beyond (1:20 p.m. – 3 p.m.)
Moderator: Zach Zweihorn, Davis Polk & Wardell LLP
Panelists include executives from Fireblocks, Anchorage Digital Bank, Fidelity Digital Asset Services, Kraken, Exodus Movement, Etana Custody, and Copper Technologies. - Investment Adviser and Investment Company Custody (3:30 p.m. – 5 p.m.)
Moderator: Zach Zweihorn
Industry leaders from top law firms, asset managers, and universities—such as Simpson Thacher, Schulte Roth & Zabel, WisdomTree, and Georgetown University Law—will debate best practices and compliance requirements for adviser custody arrangements.
Richard Gabbert (Chief of Staff, Crypto Task Force), Acting Chair Mark Uyeda, Commissioner Caroline Crenshaw, and Commissioner Peirce will provide opening remarks, underscoring the SEC’s commitment to collaborative rule‑making with industry stakeholders.
Market Demand and Institutional Adoption
Since the January 2024 approval of spot Bitcoin ETFs, demand for regulated custody solutions has surged. BNY Mellon, for example, confirmed its intent to support crypto ETFs, noting “strong demand in the market for bank‑qualified custodians for digital assets”. Hashdex reported that BNY Mellon received SEC non‑objection for its custody framework, enabling services beyond BTC and ETH ETFs and bolstering market trust by segregating client assets from the firm’s own balance sheet. Other traditional custodians—like Crédit Agricole in France, Standard Chartered in Dubai, and HSBC’s forthcoming offering—are racing to capture institutional flows, indicating a rapid mainstreaming of digital asset custody services.
Regulatory Shifts Under New SEC Leadership
President Trump’s inauguration in January 2025 brought swift changes to the regulatory landscape. Trump appointed Mark Uyeda as Acting SEC Chair on January 20, positioning him to steer policy until a permanent chair is confirmed. Reuters sources indicate that “top Republican officials at the SEC are poised to begin overhauling the agency’s cryptocurrency policies,” potentially rolling back stringent enforcement measures from the prior administration. Furthermore, the Department of Justice disbanded its National Cryptocurrency Enforcement Team in April 2025, reflecting a broader government trend toward deprioritizing crypto‑specific prosecutions.
Global Standards and Comparative Landscape
Across the Atlantic, the EU’s Markets in Crypto‑Assets Regulation (MiCA) became fully applicable for Crypto‑Asset Service Providers (CASPs) on December 30, 2024, with stablecoin rules in force since June 2024. MiCA mandates detailed custody requirements, including liability for loss of private keys and segregation of client assets, to ensure robust investor protections. The European Commission’s ongoing probe into stablecoin investor rights underscores the emphasis on redemption safeguards under MiCA, offering a benchmark for U.S. policy-makers to consider.
Practical Implications for Blockchain Practitioners
For developers, exchanges, and emerging custodians, the roundtable’s outcomes will have immediate operational impact. Key considerations include:
- Multisignature and MPC Solutions: Enterprises must evaluate threshold‑signature schemes for secure private‑key management without single points of failure.
- Segregation of Assets: Best practices demand legally enforceable mechanisms—such as trust structures or bankruptcy‑remote wallets—to isolate customer holdings from corporate insolvency risk.
- Operational Resiliency: Custodians and smart‑contract platforms must implement disaster‑recovery protocols, periodic audits, and independent proof‑of‑reserves to maintain auditability and market confidence.
The SEC’s forthcoming interpretive guidance may clarify how these technical solutions align with securities and banking laws, making practitioner input essential.
Looking Ahead: Next Steps for Crypto Custody Evolution
Following the roundtable, the SEC is expected to solicit public comment on custody principles and may propose rule amendments—potentially under the Investment Advisers Act or via new custody rules akin to those governing mutual funds. Collaboration with global regulators, such as the European Securities and Markets Authority, could yield harmonized standards, benefiting cross‑border digital asset flows. Industry working groups (e.g., the Digital Custody Forum) will likely play a pivotal role in shaping voluntary best practices.
As digital assets become increasingly woven into the fabric of global finance, custody remains the linchpin for investor protection and market stability. The SEC’s April 25 roundtable—bringing together regulators, custodians, legal experts, and technologists—marks a critical juncture in forging a resilient, compliant custody ecosystem. Stakeholders should engage actively, ensuring that practical use cases and novel security architectures inform policy decisions. By harmonizing U.S. and international frameworks, the industry can unlock the full potential of blockchain technology for institutional and retail participants alike.
