SEC’s Crypto Broker Rules Likely to Get Overhaul, Atkins Says

A framework that enables brokers to act as custodians for digital assets may need to be repealed and replaced, Securities and Exchange Commission Chairman Paul Atkins said Monday, adding that hedge funds could be given authority to hold their own crypto.

Only two firms have obtained a “special-purpose broker dealer” authorization. The low response is the result of what Atkins called “significant limitations” imposed during the prior administration, Atkins said at a digital asset roundtable held at the SEC’s Washington headquarters.