On 25 April 2025, United States Securities and Exchange Commission (US SEC) Commissioner Mark T. Uyeda, during the Crypto Task Force’s third roundtable on custody, called for regulatory clarity and enhanced competition in the custody of crypto assets. In her speech she discussed the withdrawal of Staff Accounting Bulletin No. 121 as a positive development, Commissioner Uyeda advocated for expanded custodial options for investment advisers and registered entities. He also raised concerns regarding outdated interpretations that may unnecessarily restrict investment strategies within the digital asset sector.
Commissioner Uyeda’s statement emphasised that proper custody standards is the cornerstone of investor protection which must evolve to accommodate the realities of crypto assets. He noted that following the withdrawal of Staff Accounting Bulletin No. 121, barriers to crypto custodial services had been lifted. However, he urged the US SEC to recognise state-chartered limited purpose trust companies (such as those chartered in New York or California) as qualified custodians for crypto assets, in line with competition policies between state and federal banks and consider reforms to the “special purpose broker-dealer” regime, proposing interim guidance and eventual codification to allow compliant custody of crypto asset securities, non-securities, and traditional securities. US SEC must clarify the meaning of “funds” within the US SEC Custody Rule (17 C.F.R. § 275.206(4)-2), noting that prior overbroad interpretations have wrongly forced investment advisers to treat all crypto assets as securities or funds, thereby limiting investment opportunities. Commissioner Uyeda expressed agreement with Commissioner Hester M. Peirce’s position that most crypto assets are not securities, advocating for a more nuanced, facts-based analysis rather than blanket classifications.
Commissioner Mark T. Uyeda argues that both federally-chartered and state-chartered trust companies authorised as fiduciaries should be permitted to serve as qualified custodians for crypto assets and calls for revisiting and possibly sunsetting restrictions under the current broker-dealer framework, enabling a broader custody model for digital assets. She urges clarification around whether crypto assets constitute “funds” for custody purposes to remove regulatory uncertainty harming investment options. While advocating for opening the custody sector to more entities, thereby encouraging competition, innovation, and improved services for digital asset investors.
The United States Securities and Exchange Commission is officially pivoting from enforcement-driven ambiguity towards structured regulatory clarity for crypto assets with collaboration between the US SEC, the Executive Branch (Trump Administration), and Congress signals a high-level strategic consensus on integrating digital assets into the regulated financial mainstream.
