U.S. SEC Chairman Paul Atkins said he instructed agency staff to draft rules that could allow investment advisers, under specified conditions, to directly custody crypto assets for clients and regulated funds. The SEC is also considering adviser self-custody and recognizing state-chartered trust companies as custodians, building on earlier measures that allowed such companies to serve in that role if they meet certain requirements. The initiative addresses assets for which qualified third-party custodians do not yet exist and forms one of three pillars in the SEC's emerging crypto framework, alongside Regulation Crypto Assets and modernization of transfer-agent rules. Regulation Crypto Assets, proposed on August 18, would create exemptions for certain crypto-related investment contracts, including offerings of up to $5 million over four years or up to $75 million in any 12-month period, subject to disclosure and other requirements. The proposal also includes a conditional safe harbor from the term "investment contract" in the definition of "security." Atkins urged Congress to advance the CLARITY Act, but the Senate failed to move forward with the bill on September 15 after a procedural vote ended 49-50. The SEC plans to continue its regulatory program independently of the legislation.