# SEC cryptocurrency regulatory framework updates

> Live situation record from CLSTR: https://clstr.news/situations/sec-cryptocurrency-regulatory-framework-updates
> Updated: 2026-10-05T15:35:27.000Z. Sources: 51. Developments: 2.

The U.S. Securities and Exchange Commission (SEC) has initiated a series of regulatory updates aimed at modernizing the oversight of digital assets. Initially, the SEC proposed a framework for investment advisers and regulated funds to manage crypto asset custody. This proposal included pathways for registered investment advisers to self-custody assets under strict cybersecurity and authorization protocols, as well as allowing state-chartered trust companies to act as qualified custodians.

Following these proposals, SEC Chair Paul Atkins expanded the regulatory agenda to include the ‘Regulation Crypto Assets’ initiative, which seeks to create a tailored regime for crypto assets classified as investment contracts. Additionally, the agency introduced an ‘Innovation Exemption’ sandbox, a five-year program designed to permit national stocks to trade on decentralized exchanges. While the SEC maintains these measures are necessary to keep digital asset activity within the United States, some critics, including former SEC official John Reed Stark, have suggested these initiatives might exceed the agency’s statutory mandate.

## Claims

- The proposed framework includes Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). (corroborated by 12 sources)
- The CFTC published an advance notice of proposed rulemaking regarding a federal regulatory framework for crypto markets. (corroborated by 11 sources)
- The proposal follows the failure of the Digital Asset Market Clarity (CLARITY) Act in Congress. (corroborated by 8 sources)
- The agency has opened a 60-day public comment period for the proposed rules. (corroborated by 7 sources)
- CFTC Chairman Michael Selig urged crypto companies to build their businesses within the United States. (corroborated by 7 sources)
- Regulation CAM would create a new 'crypto asset market' registration category for exchanges. (corroborated by 6 sources)
- Exchanges that do not offer leverage may continue to operate under state-level licenses. (corroborated by 4 sources)
- Offering leverage could bring fully paid trades under federal oversight unless customers take actual delivery of their crypto. (single source)

## Timeline

### 2026-10-05: CFTC proposes federal regulatory framework for crypto markets

The CFTC has proposed a new federal regulatory framework for leveraged crypto trading, introducing Regulation CTX and CAM to provide oversight for retail crypto asset markets.

21 sources. https://clstr.news/cluster/sec-chair-paul-atkins-announces-new-crypto-regulatory-measures

### 2026-10-01: SEC proposes new crypto custody rules for advisers and funds

The SEC has proposed new rules allowing investment advisers to self-custody crypto assets under strict safeguards if no qualified custodian is available, while also recognizing state trust companies as eligible

38 sources. https://clstr.news/cluster/sec-proposes-new-crypto-custody-rules-for-advisers-and-funds

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Cite as: SEC cryptocurrency regulatory framework updates. CLSTR, https://clstr.news/situations/sec-cryptocurrency-regulatory-framework-updates