Charging over crypto, an SEC conclave recently suggested that SEC Chair Paul Atkins favors self-custody rights and developer protections. Such a shift can result in a boom for crypto, giving developers, investors, and blockchain projects in the U.S. more clarity of purpose.
The new focus has shifted toward enforced policy measures supporting risk-free innovation rather than more enforcement. Whatever changes are available will have a lasting impact on the crypto economy in the U.S. for many years to come.
Self-Custody Recognized as a Right by SEC Chair
The SEC Chair’s staunch support of self-custody is at the heart of the deliberations. During the June 2025 roundtable, he remarked that Americans ought to have the right to secure their digital assets without having to rely on third parties.
He likened the ability to store cryptocurrencies in personal wallets to cash or property safely stored in one’s home. Such analogies augment the understanding of self-custody as more than a technical term but rather as a matter of personal freedom and jurisdiction over one’s financial life.
It’s October 2023, and industry voices, such as CoinDesk and Bitcoin magazine, have praised the clarity. Much of the uncertainty previously surrounding staking platforms and wallet developers was rife with legal uncertainty under the scrutiny of the SEC.
Things were expected to change with this announcement, possibly creating a stronger crypto boom.
Innovation Exemption Could Spark the Crypto Boom
One of the most significant announcements from the SEC roundtable was the introduction of an “innovation exemption.” The SEC chair directed that the agency propose a rule affording temporary regulatory relief to early-stage Web3 projects.
This exemption would apply to developers of DEXs, smart contracts, staking platforms, and tokenization services. It allows builders to operate legitimately with some level of compliance and transparency.
The exemption, as proposed, will now undergo the rulemaking process of notice and comment, which allows for public comments, experts’ opinions, and even contests against the intent.
If implemented, it could largely ease the legal impediments to launching crypto projects, which in turn would set the conditions for a crypto boom.
Custody Rules Under Review to Reduce Barriers
The SEC also conceded earlier difficulties in addressing custody rules for Registered Investment Advisers (RIAs); such custodians had mandated RIAs for “qualified custodians” to handle digital assets, broadly prohibiting all daily investment seeking some crypto exposure.
Many critics, including financial professionals, considered the rules impractical and discriminatory against many legitimate service providers. By reassessing the rules, the SEC attempted to democratize and equalize the digital asset market.
This would draw in more financial advisors to at least dabble with crypto and diversify exposure, a shift in a message to stimulate the broader regulatory retraction thought to augur well for the burgeoning cryptocurrency boom.
Experts Back the SEC Chair’s Policy Direction
Analysts and attorneys within the cryptocurrency sector have begun to emphasize the importance of this shift. According to Jesse Hamilton,
“Paul Atkins is signaling a regulatory framework that allows on-chain systems to operate confidently.”
Trader Scott Melker, aka The Wolf of All Streets, congratulated the development on X (formerly Twitter), emphasizing,
“This is the kind of approach the industry has been asking for clear rules, not crackdown.”
The above views represent a growing acknowledgment that innovation flourishes when regulators start supporting builders instead of penalizing them. This means that the cryptocurrency boom becomes a greater possibility.
What This Means for Developers and Investors
From a developer’s perspective, as far as the SEC Chair is concerned, self-custody and exemptions from various policies mean fewer legal landmines for anybody contemplating projects.
Publishing open-source code or running a staking protocol would mean less legal red tape shortly since everything seems more straightforward.
For investors, more acceptance is a sign of the legitimacy and protection of decentralized systems. If the crypto venture is allowed to develop under better-defined rules, the user will be assured of being able to choose safely and legally.
For once, both sides benefit from going from unpredictability to rigidity as the real beauty blends transparency and trust for user confidence, another key ingredient necessary for keeping a crypto boom alive.
Conclusion
The SEC Chair is propounding a paradigm where innovation must not be crippled by enforcement at every turn. The new framework of formal exemptions, work towards self-custody, and revisiting outdated custody rules set the stage for an epochal crypto boom long awaited in the U.S.
If the agency moves in that direction, clarity might finally descend upon developers and investors. Such certainty is the spark crypto needs to convert a recovery into a new growth cycle.
Follow us on Twitter and LinkedIn, and join our Telegram channel for more news.
FAQs
What is the innovation exemption that the SEC Chair has proposed?
The rule’s idea is to allow crypto projects in their early stages to conduct their main activities with less legal burden and some accountability.
Why is self-custody important in crypto?
With self-custody, a person retains the power to hold their assets without the interference of any intermediary, thus increasing personal decision-making power.
How would custody rules shift?
The SEC is likely to find a way to relax the rigid rules requiring RIAs to utilize only qualified custodians when investing in crypto assets, making advice on crypto products easier.
What are the following rule changes?
Innovation exemption and custody rule changes will be subjected to an official comment rulemaking process before being finalized, most likely in late 2025.
Glossary
SEC chairperson: A person who presides over the U.S. Securities and Exchange Commission overseeing securities laws.
Crypto Boom: A remarkable growth and adoption phase in the digital asset market.
Self-Custody: Storing your digital assets in a wallet you control.
Innovation Exemption: A proposed legal safeguard to help crypto projects grow with light penalties.
DeFi: short for Decentralized finance; financial tools running on the blockchain without intermediaries.
