#CryptoRoundTableRemarks The SEC's 3rd Crypto Roundtable focused on the challenges of safely custodying crypto assets for customers while complying with federal securities laws. Key remarks from the roundtable include ¹ ²:

- *SEC Chair Paul Atkins' Remarks:*

- Emphasized the importance of self-custody, calling it a "foundational American value" that shouldn't change even in the context of crypto.

- Expressed support for providing flexibility to market participants to self-custody their crypto assets, especially when intermediation imposes unnecessary transaction costs or restrictions.

- Directed the staff to determine if further guidance is needed on self-custody and DeFi activities.

- *Commissioner Hester Peirce's Comments:*

- Highlighted the need for clear regulations, comparing the current environment to a game where "the floor is lava" due to legal uncertainty.

- Urged the SEC to update and clarify crypto-specific rules to support innovation while ensuring investor protection.

- *Commissioner Caroline Crenshaw's Concerns:*

- Emphasized the need for robust custody rules to protect investors from unique risks associated with crypto assets, such as hacks and smart contract bugs.

- Questioned whether an independent crypto custody regime could match the current SEC rules, which she labeled as the "gold standard" of investor protection.

The roundtable also discussed potential changes to custody rules under the Exchange Act, Advisers Act, or Investment Company Act to accommodate crypto assets and blockchain technology. Some experts believe that the current framework needs attention, and a new crypto asset broker-dealer framework might be necessary.