Fireblocks Engages SEC on Crypto Custody Amid Regulatory Scrutiny

Digital asset infrastructure provider Fireblocks met with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on February 20, 2025, to discuss the evolving regulatory landscape for crypto custody.

Fireblocks, which has made a name for itself by providing institutional-grade custody solutions for major financial entities such as BNY Mellon and BNP Paribas, presented policy principles and technical frameworks designed to enhance security, risk management, and compliance in digital asset custody.

The company emphasized that existing banking and capital market custody standards have not kept pace with innovations in blockchain-based assets, necessitating new regulatory approaches.

In its presentation, Fireblocks urged the SEC to consider global best practices – such as Dubai’s Custody Services Rulebook – and leverage existing cybersecurity and risk management frameworks to modernize U.S. custody regulations. The firm highlighted privileges and access management, incident response, disaster recovery, and cryptographic key security as essential pillars of a robust digital asset custody regime.

With regulatory uncertainty surrounding crypto custody and the SEC’s increased enforcement actions in the sector, the meeting signals a potential shift toward collaborative engagement between regulators and industry leaders.

The meeting aligns with recent SEC initiatives, including Staff Accounting Bulletin No. 122 and Commissioner Hester Peirce’s “The Journey Begins” announcement of a renewed focus on crypto market structure and innovation.

As digital assets continue to integrate into the traditional financial system, industry stakeholders and regulators alike are racing to establish a clear, enforceable framework for secure and compliant custody solutions.