U.S. regulators push crypto self-custody rights in policy shift

The U.S. Securities and Exchange Commission (SEC) is shifting its regulatory stance to promote greater flexibility in cryptocurrency self-custody, with Chair Paul Atkins emphasizing individual rights to control digital assets. During a June 2025 roundtable, Atkins outlined a pro-crypto agenda that diverges from the more rigid approach under former Chair Gary Gensler. This evolution in policy is part of a broader initiative dubbed “Project Crypto,” aimed at integrating blockchain technology into traditional financial systems while ensuring consumer autonomy [1].

Atkins argued that intermediation in crypto asset management often imposes unnecessary transaction costs and restricts participation in onchain activities like staking. “I’m in favor of affording greater flexibility to market participants to self-custody crypto assets,” he stated, highlighting the potential for decentralized finance (DeFi) and wallet-based activities to thrive under a more accommodating regulatory framework [2].

The move aligns with recent White House guidance, which called for preserving user self-custody rights while clarifying how existing regulations apply to decentralized technologies. The report also urged Congress to refine the oversight roles of the SEC and the Commodity Futures Trading Commission (CFTC), signaling a more structured approach to crypto regulation [3]. This policy shift reflects a growing recognition of the unique attributes of crypto assets and the importance of fostering innovation within the digital finance ecosystem.

The implications of these regulatory changes are expected to reshape market dynamics. Flexible crypto custody rules could drive shifts in trading behaviors and innovations in self-custodial platforms. As asset managers and crypto exchanges adjust to the new environment, they may see changes in how crypto assets are handled, influencing both institutional and retail investor strategies [4].

Historically, regulatory pivots have led to growth in the cryptocurrency ecosystem, and this development could follow a similar trajectory. The potential for increased liquidity and technical advancements in self-custody and DeFi may reshape market landscapes, encouraging broader participation and new business models.

The U.S. government’s pro-crypto stance is also part of a larger effort to maintain leadership in global digital finance. The White House’s working group, including SEC Chair Atkins, is pushing for legislative action to strengthen the country’s position in the evolving crypto market. The group is encouraging Congress to refine a House-approved bill that would restructure crypto market regulation, aiming to balance innovation with consumer protection and regulatory oversight [5].

From a global perspective, the SEC’s emphasis on self-custody may influence international regulatory approaches. The White House report highlights cross-border considerations, suggesting the U.S. seeks to promote interoperability and regulatory alignment with other nations while maintaining leadership in digital finance [6].

The industry’s response to these developments remains to be seen, but the direction set by the SEC and the White House indicates a clear intent to support crypto innovation while addressing the inherent risks of digital assets. As the policy landscape continues to evolve, the focus on user rights and technological integration could define the future of financial regulation in the digital age.

Source:

[1] MarketWatch: [SEC's Atkins launches 'Project Crypto' to bring U.S. ...](https://www.marketwatch.com/story/secs-atkins-launches-project-crypto-to-bring-u-s-markets-on-chain-heres-what-you-should-know-30958653)

[2] MSN: [US securities regulator lays out sweeping plans ...](https://www.msn.com/en-us/money/markets/us-securities-regulator-lays-out-sweeping-plans-to-accommodate-crypto/ar-AA1JFELy?ocid=finance-verthp-feeds)

[3] FinanceFeeds: [White House Unveils Sweeping Crypto Policy Framework ...](https://financefeeds.com/white-house-unveils-sweeping-crypto-policy-framework-to-cement-u-s-leadership-in-digital-finance/)

[4] Yahoo.co: [White House in crypto policy report calls for SEC action ...](https://ca.news.yahoo.com/white-house-set-unveil-closely-100450836.html)

[5] POLITICO: [White House releases new crypto recommendations in ...](https://subscriber.politicopro.com/article/2025/07/white-house-to-release-new-crypto-recommendations-in-landmark-report-00484253)

[6] Bit2Me: [The White House today releases its long-awaited report on ...](https://news.bit2me.com/en/casa-blanca-publica-informe-sobre-activos-digitales)