#CryptoRoundTableRemarks

The SEC's crypto roundtable discussion focused on key issues surrounding cryptocurrency regulation, particularly custody and decentralized finance (DeFi). Here are the key remarks:

*Key Discussion Points:*

- *Custody Rules*: The SEC is exploring changes to custody rules under the Exchange Act, Advisors Act, and Investment Company Act to accommodate digital assets. Chairman Paul Atkins emphasized the importance of flexibility for market participants to self-custody their crypto assets, citing it as a "foundational American value".

- *DeFi Regulation*: The roundtable discussed the need for regulatory clarity in DeFi, with Commissioner Hester Peirce advocating for updated and clear crypto-specific rules to support innovation while ensuring investor protection. Commissioner Caroline Crenshaw highlighted the unique risks associated with crypto assets, such as hacks and smart contract bugs, and emphasized the need for robust investor protection.

- *Investor Protection*: The discussion also touched on the importance of protecting investors' assets, with Crenshaw cautioning against lowering the bar for investor protection and emphasizing the need for transparent disclosures.

*SEC's Approach:*

- *Guidance on Self-Custody and DeFi*: Chairman Atkins directed staff to determine whether further guidance is needed on self-custody and DeFi activities.

- *Balancing Innovation and Protection*: The SEC aims to strike a balance between fostering innovation in the crypto space and ensuring investor protection.

*Industry Perspectives:*

- *Regulatory Clarity*: Industry leaders emphasized the need for clear and concise regulations to support innovation and growth in the crypto space.

- *Flexibility and Innovation*: The discussion highlighted the importance of flexibility in regulatory approaches to accommodate the unique characteristics of digital assets.¹ ²