SEC Agenda Could Reduce Oversight for Bitcoin and Other Crypto Firms, Potentially Easing Broker-Dealer and Custody Rules

• Proposed safe harbors and exemptions for crypto offerings.

• Amendments to Exchange Act language to address trading on ATS and national exchanges.

• Suggested updates to broker-dealer financial responsibility and custody rules to accommodate digital assets.

SEC crypto rule changes: spring 2025 agenda proposes exemptions, custody and broker-dealer updates to clarify digital asset regulation — read implications and next steps.

What are the SEC crypto rule changes in the spring 2025 agenda?

SEC crypto rule changes announced in the spring 2025 regulatory agenda include proposed exemptions and safe harbors for crypto offerings, revisions to broker-dealer and custody rules, and amendments to the Exchange Act to address crypto trading on alternative systems. These proposals aim to modernize oversight while requiring public notice and comment.

How could the proposed rules affect broker-dealers, custody and reporting?

The agenda suggests modifying broker-dealer financial responsibility rules and the Investment Advisers Act custody provisions to better fit digital assets. This could reduce reporting burdens for some crypto firms and ease KYC/AML enforcement on certain networks, though final impact depends on rule text and public feedback.

SEC Chair Paul Atkins said the agenda seeks to “clarify the regulatory framework for crypto assets and provide greater certainty to the market,” and that the agency will tailor regulation within statutory authority.

The proposed rule changes potentially affecting SEC guidelines on broker-dealers, custody and reporting could allow crypto companies to operate in the US with less oversight.

US Securities and Exchange Commission (SEC) Chair Paul Atkins has released a regulatory agenda containing about 20 proposed rules that could materially affect how the SEC treats digital assets. Each proposal varies in scope and timing, and all require formal rulemaking processes before adoption.

The agenda highlights potential inclusion of “certain exemptions and safe harbors” related to the offer and sale of crypto assets and contemplates amending the Exchange Act “to account for the trading of crypto assets on [alternative trading systems] and national securities exchanges.” If enacted, those changes could lower the risk of enforcement actions for compliant projects.

Proposals also target broker-dealer financial responsibility standards and the Investment Advisers Act custody rules. Changes could reduce reporting obligations for firms that custody or facilitate crypto transactions, while clarifying which activities trigger existing securities law duties.

Broker-dealer rules have been contentious because they can require networks to collect KYC/AML data that some platforms currently cannot gather. Proposed updates aim to reconcile those obligations with the technical realities of distributed systems.

Notably, the agenda frames several items as efforts to “modernize” the SEC’s framework to better accommodate cryptocurrencies, which marks a directional shift after prior rule proposals that sought stricter treatment of digital assets. However, each proposal will undergo public comment and interagency review before any final rule is adopted.

Since former SEC Chair Gary Gensler resigned on Jan. 20, the commission’s approach has shifted: several investigations and lawsuits were dropped or deprioritized, and new guidance signals a more permissive regulatory outlook for some crypto activities.

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Frequently Asked Questions

How long until proposed SEC crypto rule changes become final?

Rulemaking timelines vary, but expect months to over a year. The process includes proposal publication, a public comment period, possible revisions, and final adoption, so stakeholders should plan for extended transition periods.

What should crypto firms do now to prepare?

Firms should review current compliance programs, assess custody and reporting processes, and prepare to submit targeted comments. Legal and technical evaluations will help map potential operational changes if rules are finalized.

Key Takeaways

• Regulatory shift: The spring 2025 agenda signals a move toward clarifying crypto rules with proposed exemptions and safe harbors.
• Operational impact: Broker-dealer and custody rule changes could reduce reporting burdens but require precise rule language to take effect.
• Action items: Monitor proposal publications, review texts, and participate in public comment to influence final rules.

Conclusion

The SEC crypto rule changes in the spring 2025 agenda propose targeted updates to exemptions, broker-dealer responsibilities and custody rules to modernize oversight for digital assets. Stakeholders should track proposal releases, evaluate operational impacts, and engage in public comment to shape final outcomes.