SEC Chair Paul Atkins Champions Bitcoin Self-Custody as “Foundational American Value”

New SEC leadership signals major shift toward crypto-friendly regulation, emphasizing individual property rights

SEC Chairman Paul Atkins has emerged as a powerful advocate for Bitcoin and cryptocurrency self-custody, declaring that “the right to have self-custody of one’s private property is a foundational American value.” This statement marks a dramatic departure from previous regulatory approaches and signals a new era of crypto-friendly oversight at the nation’s top securities regulator.

JUST IN: SEC Chair Paul Atkins announces he’s in favor of Bitcoin & crypto self custody. 👀

“The right to have self custody of ones private property is a foundational American value.” 🇺🇸 pic.twitter.com/p9Ne97baxK

— Bitcoin Magazine (@BitcoinMagazine) June 9, 2025

A Regulatory Philosophy Shift

Atkins’ endorsement of self-custody represents more than just policy preference—it reflects a fundamental philosophical shift at the SEC. This marks a departure from previous SEC leadership, which relied heavily on enforcement actions and broad interpretations of securities laws. Under the new administration, the focus has moved from adversarial enforcement to creating frameworks that enable innovation while protecting investors.

The timing is significant. This change in direction coincides with a broader shift at the SEC following the departure of former Chair Gary Gensler and the arrival of the Trump-era appointees. The agency has already begun rolling back enforcement actions and launched a Crypto Task Force focused on industry engagement rather than punitive measures.

Why Self-Custody Matters More Than Ever

Self-custody—the practice of holding your own cryptocurrency private keys rather than relying on exchanges or third-party custodians—has become increasingly important as the crypto market has matured. The collapse of major crypto firms such as FTX in 2022 is a vivid example of why self-custody matters. Many investors lost access to billions in digital assets because they did not hold their own keys.

The principle aligns with cryptocurrency’s foundational philosophy. Self-custody aligns with the decentralized philosophy behind Bitcoin and other cryptocurrencies. It is a step away from traditional finance’s reliance on banks and brokers, putting control back into the hands of individuals.

The numbers tell the story of growing adoption. According to a 2023 survey by Chainalysis, more than 30 million Americans now own cryptocurrency, with a growing number exploring self-custody options. This represents a massive shift in how Americans think about money and financial sovereignty.

CryptoNewsToday is a leading platform providing the latest updates, trends, and analysis in the cryptocurrency world. Stay informed with timely news on Bitcoin, altcoins, blockchain technology, and more.

DeFi Gets Regulatory Breathing Room

Atkins’ pro-custody stance extends to broader support for decentralized finance (DeFi) platforms. Atkins directed SEC staff to explore exemptions or new guidance that would allow decentralized finance platforms to operate with fewer barriers. This “innovation exemption” approach could fundamentally change how DeFi protocols operate in the United States.

The chairman has made clear distinctions about what should and shouldn’t be regulated. At the roundtable titled “DeFi and the American Spirit,” Atkins and other Republican commissioners argued that software developers should not be held liable for how decentralized tools are used. This code-versus-conduct distinction could protect developers while still maintaining necessary consumer protections.

Growing Infrastructure Supports the Movement

The regulatory shift comes as self-custody infrastructure has become more user-friendly. Recently, platforms like Ledger and Trezor have made hardware wallets more accessible to everyday users. These devices securely store private keys offline, protecting them from cyber threats. Meanwhile, software wallets like MetaMask offer user-friendly ways to manage keys on smartphones and computers.

This technological evolution has made self-custody practical for mainstream users, not just crypto enthusiasts. The combination of better tools and supportive regulation could accelerate adoption significantly.

Also Read: Bitcoin’s $150K Target: Bull Market Dream or Technical Nightmare?

Industry Impact and Future Implications

The endorsement from such a high-ranking regulatory official carries substantial weight. Atkins’ public endorsement adds weight to this movement, encouraging more investors to explore self-custody as a viable strategy. This regulatory clarity could remove barriers that have prevented institutional and retail investors from embracing self-custody solutions.

The SEC’s new approach reflects broader changes in how regulators view cryptocurrency. Rather than trying to force digital assets into traditional regulatory frameworks, Atkins appears committed to developing new approaches that recognize the unique characteristics of blockchain-based systems.

This shift toward supporting self-custody and DeFi innovation represents one of the most significant regulatory developments in cryptocurrency’s history. By framing self-custody as a fundamental American right, Atkins has provided both philosophical and practical support for the continued growth of decentralized finance and individual financial sovereignty.

For the millions of Americans already involved in cryptocurrency, and the many more considering it, this regulatory clarity provides the confidence needed to explore self-custody options while maintaining compliance with federal oversight. The message is clear: the right to control your own money is not just technologically possible—it’s an American value worth protecting.