SEC advances crypto custody proposal as Senate drops CLARITY Act
SEC Chair Paul Atkins proposed modernized crypto custody rules on October 2 after the Senate failed to pass the CLARITY Act, with the agency down to two commissioners.
Why it matters
The custody overhaul is still a proposal, so no custody rule change is in force, and the tokenized-stock relief is the only crypto measure CryptoSlate described as already issued. With two listed commissioners and a new single-member quorum exception, Commission-level decisions on crypto policy would rest on a smaller body. A narrower Commission also limits how much criticism the agency draws for acting without Congress, the charge Bitcoin.com reported.
Where the sources disagree
Which securities regulator the evidence set covers
US Securities and Exchange Commission, custody and quorum rules
Bitcoin.com News, CryptoSlate
Securities and Exchange Commission of Thailand, crypto ETF guidelines
Crypto News (CryptoNews.net)
Two sources report the US SEC on crypto custody and quorum rules, while the third source reports Securities and Exchange Commission of Thailand guidelines for crypto ETFs and supports nothing about the US agency.
Key facts
Atkins said the existing custody rules date from 1940 and were only ever meant for the safekeeping of traditional assets.
1,940Reported by Bitcoin.com News
The custody statement came after a five-year sandbox that allowed national stocks to trade on decentralized exchanges.
Reported by Bitcoin.com News
Bitcoin.com News reported that critics argue the SEC is exceeding its mandate, a characterization no other source in the set repeats.
Reported by Bitcoin.com News
Hester Peirce's resignation letter was dated September 21 and made her departure from the SEC effective October 2.
Reported by CryptoSlate
A new rule permits one eligible member to constitute the Commission's quorum when every other sitting member is disqualified from a particular matter.
Reported by CryptoSlate
What happened
SEC Chair Paul Atkins posted a statement on October 2 proposing that the commission modernize custody rules written in 1940, which he said covered only the safekeeping of traditional assets and no longer fit how digital assets are held. Bitcoin.com News reported the statement follows the Senate's failure to pass the CLARITY Act in September and a five-year sandbox that let national stocks trade on decentralized exchanges, and that critics of the agency argue it is exceeding its mandate, a claim only that outlet carries. CryptoSlate reported that Hester Peirce's resignation, dated September 21 and effective October 2, leaves Paul Atkins and Mark Uyeda as the SEC's only two listed commissioners on a roster updated October 3. The same report described a new rule letting one eligible member form the Commission's quorum when every other sitting member is disqualified from a particular matter. On where the rules stand, CryptoSlate said the custody reform and a new offering regime remain proposals while tokenized-stock trading relief is already an issued conditional order. One article in the evidence set, from Crypto News, covers guidelines from the Securities and Exchange Commission of Thailand for crypto ETFs and says nothing about the US commission, so it corroborates none of the above.
How the story developed
- Official statement
Atkins proposes modernized crypto custody rules
The SEC chair posted a statement on social media on October 2 describing a proposal to modernize custody regulation and to keep digital asset markets in the US.
- Official statement
Peirce's departure takes effect
Her tenure at the SEC ended October 2, leaving two listed commissioners.
- Official statement
SEC roster updated to two members
A roster update on October 3 listed Chairman Atkins and Commissioner Mark Uyeda as the only commissioners, and the SEC's historical service table records Peirce's tenure ending October 2.
- First report
First report by Bitcoin.com News
Atkins Vows More Crypto Rule Changes to Keep Markets Onshore
- Independent corroboration
Independently corroborated by CryptoSlate
SEC drops to 2 members, and 1 hidden rule shifts crypto power
- Update
CryptoSlate reports the quorum exception and the state of the rules
The report described the single-member quorum exception and said custody and offering rules are proposals while tokenized-stock relief is an issued conditional order.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 4 Oct 2026, 22:05 UTC: Bitcoin.com News, official — 1 independent source, 1 reports
- 7 Oct 2026, 02:20 UTC: CryptoSlate — 2 independent sources, 2 reports
- 8 Oct 2026, 12:33 UTC: Crypto News (CryptoNews.net) — 3 independent sources, 3 reports
Affected entities
Also mentioned: Gary Gensler
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Bitcoin.com News Company, official | Atkins Vows More Crypto Rule Changes to Keep Markets Onshore | Original | |
| CryptoSlate Crypto media | SEC drops to 2 members, and 1 hidden rule shifts crypto power | Independent | |
| Crypto News (CryptoNews.net) Aggregator | Thai SEC backs crypto ETFs with rules to protect Thai investors | Syndicated |
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