#CryptoRoundTableRemarks

The US Securities and Exchange Commission (SEC) recently held its third Crypto Task Force roundtable, focusing on crypto custody and regulatory clarity. Key remarks from the event include ¹ ²:

- *SEC Chairman Paul Atkins' Remarks*: Atkins emphasized the need for clear regulatory rules for digital assets and distributed ledger technologies. He expects huge benefits from blockchain technology for efficiency, cost reduction, transparency, and risk mitigation.

- *Custody Rules Discussion*: The roundtable discussed challenges SEC registrants face when safely custodying crypto assets for customers. Commissioner Caroline Crenshaw highlighted the importance of robust custody rules, citing unique risks associated with crypto assets like hacks and smart contract bugs.

- *Regulatory Clarity*: Commissioner Hester Peirce urged the SEC to update and clarify crypto-specific rules, citing outdated regulations that could push investors toward less safe alternatives. She compared the current regulatory environment to a game of "The Floor is Lava," where firms must navigate legal uncertainty.

- *Tokenization*: The SEC's fourth Crypto Task Force roundtable focused on tokenization, exploring how blockchain-based tokenization is transforming capital markets and asset management strategies. Panelists discussed improving liquidity, transparency, and market access through tokenization.

*Key Takeaways:*

- *Clear Regulatory Framework*: The SEC aims to establish clear rules for crypto asset markets, ensuring investor protection and encouraging innovation.

- *Custody Solutions*: The commission is working to enhance competition and provide interim guidance on custodial solutions for crypto assets.

- *Tokenization's Future*: Industry experts stress the importance of regulatory clarity for unlocking global capital markets through tokenization.

The roundtables feature industry experts and aim to inform the SEC's approach to crypto regulation, potentially marking a shift towards a less enforcement-focused regulatory framework ³.