#CryptoRoundTableRemarks The recent SEC Crypto Roundtable discussion focused on regulatory clarity for crypto assets, particularly custody rules. Key takeaways include¹ ² ³:

- *Regulatory Challenges*: SEC Chairman Paul Atkins emphasized the need for clear rules to accommodate crypto assets and blockchain technology, citing uncertainty as a major obstacle to innovation.

- *Custody Solutions*: Commissioner Hester Peirce, also known as "CryptoMom," advocated for updating rules to support innovation while ensuring investor protection. She highlighted the difficulties firms face due to legal uncertainty, comparing it to a game where "the floor is lava".

- *Investor Protection*: Commissioner Caroline Crenshaw stressed the importance of robust custody rules, citing unique risks associated with crypto assets like hacks and smart contract bugs. She emphasized that innovation shouldn't come at the expense of investor protection.

- *Tokenization*: The roundtable also explored tokenization's potential to transform capital markets and finance. Panelists discussed improving liquidity, transparency, and market access through blockchain-based tokenization.

Some of the specific topics discussed include:

- *Special Purpose Broker-Dealer Regime*: The need for a new crypto asset broker-dealer framework or modifications to the existing one.

- *State-Chartered Limited Purpose Trust Companies*: Whether these companies can custody crypto assets as qualified custodians.

- *Self-Custody and Smart Contracts*: The challenges of applying current rules to crypto markets, particularly around self-custody and smart contracts.

The discussion aims to shape the SEC's approach to crypto regulation, with Chairman Atkins expressing eagerness to work with market participants and Congress to establish a rational regulatory framework.