Paul Atkins, a former commissioner of the U.S. Securities and Exchange Commission (SEC), has publicly criticized current SEC Chair Gary Gensler’s stance on cryptocurrency self-custody. Atkins argued that Gensler’s regulatory approach creates confusion and unnecessary burdens for crypto investors who manage their own digital assets.
Atkins emphasized that self-custody—where users hold their own private keys rather than entrusting assets to third parties—is a fundamental principle of crypto ownership and decentralization. He suggested that the SEC’s current policies risk undermining this key feature by imposing overly strict regulations on self-custody practices.
The former commissioner also highlighted the need for clearer regulatory guidelines that recognize the unique aspects of digital asset custody. Atkins believes that accommodating self-custody within a balanced regulatory framework would better protect investors without stifling innovation in the crypto space.
Atkins’s comments add to ongoing debates about the SEC’s role in shaping crypto regulation, particularly regarding investor protection and the industry’s growth. His critique points to broader challenges regulators face in adapting traditional securities laws to the rapidly evolving digital asset ecosystem.
