The regulatory landscape for cryptocurrencies in the United States undergoes a profound transformation in late April 2025, as two major federal agencies move simultaneously to embrace the digital asset industry. SEC Chair Paul Atkins makes his first public appearance in his new role at the agency’s third crypto roundtable on custody, while the Federal Reserve quietly dismantles the supervisory framework that kept many crypto companies locked out of the banking system for years.
TL;DR
- SEC Chair Paul Atkins opens the third Crypto Task Force roundtable focused on crypto custody
- Atkins states the SEC has room to regulate digital assets under existing laws without immediate congressional action
- The Federal Reserve rescinds prior guidance that restricted crypto firms from accessing banking services
- The move effectively ends what the industry calls “Operation Chokepoint 2.0”
- Both actions signal a decisive shift toward integrating crypto into the mainstream financial system
A New Sheriff at the SEC
Paul Atkins, confirmed as SEC Chair in early 2025, takes the stage at the agency’s third Crypto Task Force roundtable with a message that marks a sharp departure from his predecessors. The roundtable, focused on crypto custody, brings together industry participants, legal experts, and regulators to discuss how the SEC should update its framework for safeguarding digital assets.
Atkins emphasizes the urgent need to modernize the SEC’s custody rules — some of which date back decades — to accommodate the unique characteristics of blockchain-based assets. According to multiple reports from the event, Atkins states that the SEC has “ample room to maneuver” in regulating digital assets under existing laws, without waiting for Congress to pass new legislation, though he acknowledges that congressional input would be beneficial.
The roundtable represents the third in a series that began earlier in 2025, following sessions on crypto trading and general regulatory framework. Future roundtables are planned on tokenization (May 12) and decentralized finance (June 6), underscoring the breadth of the SEC’s engagement with the industry.
The End of Operation Chokepoint 2.0
While the SEC grabs the headlines, an equally consequential shift happens at the Federal Reserve. The central bank rescinds prior supervisory guidance related to crypto-asset and dollar token activities, signaling that it now treats crypto services like any other banking activity — eliminating the requirement for special approvals and heightened scrutiny.
The rescinded guidance, informally known in the industry as “Operation Chokepoint 2.0,” effectively prevented many crypto companies from obtaining or maintaining banking relationships. After the collapse of FTX in late 2022, federal regulators adopted an aggressively cautious posture, pressuring banks to sever ties with crypto firms. The result was a wave of account closures and denials that left many legitimate businesses struggling to perform basic financial operations like payroll and vendor payments.
The Fed’s reversal changes the calculus entirely. Crypto companies can now approach banks without facing the automatic heightened supervision that previously made institutions reluctant to take them on as clients. However, the Fed stops short of granting “master accounts” — direct access to the Federal Reserve’s payment system — to crypto-focused banks like Custodia Bank and Kraken Financial, meaning some barriers remain.
Legislative Momentum Builds
The regulatory shifts at the SEC and Fed coincide with a burst of legislative activity on Capitol Hill. Senator Bernie Moreno introduces the Deploying American Blockchains Act of 2025, a bipartisan bill that directs the Secretary of Commerce to lead federal blockchain policy initiatives and establishes a National Blockchain Deployment Advisory Committee. The bill, cosponsored by Senators Tim Sheehy and Lisa Blunt Rochester, aims to promote blockchain deployment across cybersecurity, supply chain management, healthcare, and decentralized identity.
Meanwhile, the Commodity Futures Trading Commission issues a public request for comment on whether derivatives markets should expand to 24/7 trading, driven in large part by the around-the-clock nature of cryptocurrency markets. The consultation represents an acknowledgment that traditional market hours increasingly fail to reflect the reality of modern digital asset trading.
Internationally, El Salvador’s digital asset regulator meets with the SEC’s Crypto Task Force to propose a cross-border regulatory sandbox, highlighting the growing recognition that crypto regulation cannot happen in isolation within national borders.
Market Reacts Positively
The combination of regulatory clarity and institutional acceptance fuels a significant market rally. Bitcoin surges past $95,000 for the first time in two months, posting a 13% gain over the week. Investors pour $2.6 billion into Bitcoin ETFs in a single week, while approximately $300 million in crypto short positions face liquidation as the market shifts decisively bullish. Ethereum hovers around $1,800, and altcoins like Solana and Dogecoin post strong gains as risk appetite returns across the broader crypto market.
The regulatory developments appear to validate the thesis that clearer rules attract institutional capital, creating a positive feedback loop between policy progress and market growth.
Why This Matters
April 28, 2025 may be remembered as the day the United States regulatory apparatus fully committed to crypto integration rather than crypto suppression. The simultaneous actions by the SEC and the Federal Reserve — the two most powerful financial regulators in the country — create a coherent pro-innovation signal that the industry has sought for years. For investors, entrepreneurs, and traditional financial institutions alike, the message is unmistakable: crypto is no longer tolerated in the US financial system — it is being actively incorporated into it. The question now is whether this integration can be executed competently enough to prevent the next cycle of regulatory whiplash.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
Operation Chokepoint 2.0 finally dead. took way too long but ill take it
Atkins saying the SEC has ample room under existing laws is the most refreshing thing Ive heard from that agency in years. No need to wait for Congress to get its act together.
fed rescinding crypto banking guidance AND atkins at the SEC in the same week. if you told me this in 2023 i would have laughed
The custody roundtable is actually important. How do you regulate self-custody vs institutional custody under the same framework? Thats the real question Atkins needs to answer.
^ agreed, the self custody question is the hard one. institutional custody is just banking with extra steps
decades old custody rules being applied to blockchain assets was always absurd. good to see someone at the SEC finally acknowledging that