Technologies
Best Handheld Gaming Consoles Right Now
While the Nintendo Switch 2 and Steam Deck are the obvious choices for best handheld game consoles, we test out everything the portable game device market has to offer.
I’ve loved gaming, and particularly gaming handhelds, all of my life. I grew up with every variation of the Game Boy and Sega Game Gear, and more. At CNET, I’ve reviewed mobile gaming and handhelds going back to the Nintendo 3DS and PlayStation Vita, through the launch of the iPhone and iPad, and up to the Switch 2. There are more handheld gaming options than ever, especially if you count phones and tablets. Here below are the best options right for dedicated handheld devices of all forms, and a look forward at what to expect in the next few years.
What is the best handheld game console overall?
It’s a tough time to pick winners, especially since there are so many types of different handhelds right now, but the Nintendo Switch 2 is a newcomer that’s wowed me with its graphics, its improved design, and Nintendo’s focus on making an already-popular Switch even better. The Switch 2 isn’t a necessary upgrade for everyone yet, and makes tradeoffs: Battery life is shorter than other Switch models, and there aren’t that many exclusive Switch 2 games yet. Still, the handheld’s got tons of new perks.Â
But I still love the Steam Deck, which remains one of the best-performing and versatile ways to play PC games on the go. The Steam Deck’s big and bulky — and a few years old now — but as a vehicle to play tons of interesting and well-optimized games on Steam, it’s a great option too.
Best gaming handhelds of 2025
Pros
- Slim design
- Large 1080p display
- Notably better graphics
- Great-feeling magnetic-attaching controllers
Cons
- MicroSD Express cards are hard to find right now
- Battery life is worse than the Switch’s
- Still needs more unique exclusives
Nintendo’s first true console successor to the Switch, the Switch 2 comes with all sorts of welcome upgrades, while keeping the concept and game compatibility with Switch mostly intact. The feel is more like a Windows handheld or Steam Deck, but slimmer, and its graphics upgrades both on handheld and TV-connected are notably better.
A new audio/video GameChat feature could be great for friends and family, the Joy-Cons are easier to snap on and off and double as versatile mice now for supported games, and the included 7.9-inch 1080p LCD display is a welcome improvement from the original Switch. It’s also still a unique perk over other handhelds that the Switch 2 comes with a TV dock and its detachable, shareable Joy-Cons, and the Switch 2 is backward compatible with Switch games and wireless controllers. It also looks capable of running games as advanced as those on Windows game handhelds and Steam Decks. And as always, Nintendo’s new console is family-friendly.
There are downsides, though, besides the price: Battery life is considerably worse than that of other Switches, lasting only a few hours before needing a recharge, and expandable storage requires more expensive and harder-to-find microSD Express cards.Â
You just may not need to make an upgrade yet, but the Switch 2 still stands out as the best new handheld system, and upcoming Switch 2 exclusives like Donkey Kong Bananza should make it even better. Just keep in mind you’ll need to live in Nintendo’s world and play games from Nintendo’s eShop.
- Display: 7.9-inch, 1,920×1,080 LCD IPS (up to 120Hz)
- Storage: 256GB included, microSD Express card expandable
- Games: Switch and Switch 2 compatible
- TV connection: Yes, dock included (4K output)
- Size: 4.5 x 10.7 x 0.55 inches
- Weight: 1.18 pounds
- Wi-Fi: Yes (Wi-Fi 6)
- Bluetooth: Yes
Pros
- Vibrant HDR OLED display
- Runs many Steam games well
- Excellent controls, improved haptics
- Better battery life
Cons
- Large size
- Doesn’t have removable controllers
- Some Steam games don’t run on it
- Screen can sometimes feel small for some games
Valve’s big and versatile Steam Deck is still a marvel. Although it’s three years old now, it can still play a wide variety of PC games surprisingly well, and is the dream portable for any hardcore Steam fan, or anyone who has a big library of PC games. The Steam Deck can get expensive for the larger storage tiers, but for what it’s capable of, it’s not a bad deal. And, while third-party hardware manufacturers are starting to make SteamOS handhelds (the Lenovo Legion Go S is the first new option, and CNET’s Lori Grunin’s preferred pick over Steam Deck), the Steam Deck still has a standout set of controls, haptics, and trackpads that make it feel great for me.
The model to buy is the OLED version: while more expensive, its more vivid, slightly larger display, better haptics and improved battery life are worth it. The LCD model costs $399 with 256GB of storage, while the OLED models ramp up to $549 and $649, with 512GB and 1TB of storage, respectively. Steam game downloads can eat up a lot of space, so larger storage sizes are recommended unless you’re playing smaller indies.
While the Steam Deck runs Linux as opposed to Windows and Valve’s own SteamOS, you can load other software and hack other solutions onto the Steam Deck if you’re up for the effort. You can play local PC games or stream cloud-based games, and connect to a monitor, keyboard or other accessories, too.
One of my favorite parts of Steam Deck is how Valve indicates which Steam games are Steam Deck optimized in the store, helping remove the guesswork that can make Windows handhelds so frustrating. More options for PC gamers are popping up every month, but for now, Steam Deck is the best way to go.
- Display: 7.4-inch, 1,280×800 HDR OLED
- Storage: 512 or 1TB included, microSD card slot
- Games: Steam compatible
- TV connection: Yes, dock sold separately
- Size: 4.6 x 11.7 x 1.9 inches
- Weight: 1.41 pounds
- Wi-Fi: Yes (Wi-Fi 6E)
- Bluetooth: Yes
- Processor: AMD Zen 2 APU
- RAM: 16GB
Pros
- Supports a wider library of games than non-Windows devices
- Good performance for its components
- Paddles for macro combos and some basic Windows navigation
- Bumpers feel clicky and responsive
Cons
- Expensive
- Display doesn’t support HDR and only has sRGB gamut
- Pressing the ABXY buttons only registers in the center
- No trigger stops
If you prefer running Windows on a PC gaming handheld, there are multiple options. The best for now is the Asus ROG Ally X, which has solid-feeling controls, a 1080p display and a battery that lasts for at least several hours of play. It’s heavy, though, and expensive compared to the Steam Deck.
You’re also best off waiting for the Asus ROG Xbox Ally, coming later this year, which promises streamlined performance for finding and launching Xbox games. But the big advantage of a Windows-based handheld is its flexibility running games from any source or game store, provided the games are compatible with this handheld’s AMD Ryzen 7 8840HS processor and integrated graphics.
- Display: 7-inch 1,920×1,080-pixel IPS LCD, 120Hz/60Hz
- Storage: 1TB included, microSD card slot
- Games: Windows 11 Home OS, can run games via any game store or Windows source
- TV connection: Via video-out
- Size: 11.02 x 4.37 x 1.45 inches
- Weight: 1.5 pounds
- Wi-Fi: Yes (Wi-Fi 6E)
- Bluetooth: Yes
- Processor: 3.3GHz AMD Z1 Extreme
- RAM: 24GB
Pros
- Crisp LCD screen makes old games look great
- Plays Game Boy and Game Boy Advance cartridges
- Adds Game Gear, Lynx, Neo Geo Pocket with extra adapters
- USB-C charging
- Other extras include TV dock
Cons
- No Wi-Fi means sideloading OS updates via microSD card
- A little too big for most pockets
The Pocket looks like a totally remade Game Boy, and it is, in a sense. Analogue’s gorgeous handheld can play original Game Boy, Game Boy Color and Game Boy Advance cartridges perfectly, and can even play Sega Game Gear, Atari Lynx, Neo Geo Pocket and Turbografx-16 games using separately sold adapters. It has a high-res color screen and USB-C charging, and there’s a separately sold dock for TV play.
There’s also support for FPGA cores that can replicate classic game hardware and play ROMs. There’s no game store for buying games: Pocket is a system to play classic cartridges or other games in amazing quality, if you want to tinker around with FPGA. There’s also a big library of Pocket-compatible software in indie gaming channels like itch.io that can be sideloaded to a microSD card, too.
The Pocket also comes in a lot of different colors, many of which sell out fast as limited editions. It still stands on its own as a wonderfully complete retro-capable handheld for collectors of classic cartridges.
- Display: 3.5-inch 1,600 x 1,440-pixel LCD
- Storage: microSD card slot
- Games: Plays classic Game Boy, Game Boy Color, Game Boy Advance carts, or Sega Game Gear, Atari Lynx, Neo-Geo Pocket or Turbografx-16 carts with separately sold adapters. Can also sideload games.
- TV connection: Separately sold dock
- Size: 5.86 x 3.46 x 0.86 inches
- Weight: 0.6-pound
- Wi-Fi: No
- Bluetooth: Yes
The tiny, yellow, black-and-white-screened Panic Playdate looks like a weird Game Boy with a mechanical crank sprouting from its side. But this system, made by the game company that developed Untitled Goose Game, plays its own indie-developed games. Twenty-four of them come included with the purchase and appear over time like weekly presents, and a new second season of games has been equally good. More games can be bought on the Playdate’s on-handheld store (the tiny gadget has Wi-Fi), or sideloaded via sites like itch.io. Alas, the Playdate doesn’t have any backlighting — you’ll have to find a lamp instead.Â
Even three years into its debut, the Playdate has been a constant source of weird little mini-games. If you ever loved Nintendo’s classic Game and Watch and wanted something new that could fill a similar magical desire, and don’t mind being limited to the mysterious games and apps that developers have cooked up for this, the Playdate is a bit of genius that no other handheld can match.
- Display: 2.7-inch 400 x 240 pixel black-and-white reflective LCD (no backlighting)
- Storage: 4GB included
- Games: Plays games from Playdate online store or can sideload games installed via Playdate website
- TV connection: No
- Size: 2.99 x 2.91 x 0.35 inches
- Weight: 0.19-pound
- Wi-Fi: Yes
- Bluetooth: No
Other gaming handhelds we’ve tested
Nintendo Switch OLED
This used to be our favorite Switch, and its battery life and vivid OLED are still good. But we’d recommend a Switch 2 purchase now over this expensive Switch model, unless you find it on sale.
Nintendo Switch Lite
The most affordable (and smallest) Switch lacks detachable controllers and TV docking capabilities, but it’s still a great pick as a lower-cost way to bring along Nintendo games on the go.
PlayStation Portal
Sony’s oddball streaming-only handheld companion to the PlayStation 5 is actually really good as an in-house way to extend your games on a remote screen with haptics and force-feedback triggers, but performance depends on internet connectivity.
ModRetro Chromatic
Possibly the best pure Game Boy recreation available, this well-built handheld has a great display and build quality, but it’s also pricey and can only play Game Boy and Game Boy Color games.
Lenovo Legion Go S with Steam OS
An excellent Steam Deck alternative (and Lori Grunin’s preferred pick over the Steam Deck OLED), this handheld benefits from a larger display and a different control layout.
Lenovo Legion Go S with Windows
Laggy performance and an awkward Windows-on-a-handheld experience made this one feel forgettable.
How we test the best handheld gaming consoles
There are lots of ways to play games on the go, and many of them are extremely different from each other. Since the common threads are often pretty different, our goal is to think about the whole play experience as a relative versus other options. Price comes into play, as does gaming libraries. But also, we pay attention to battery life, which we judge by playing games over time. Ideally, that’s for at least a week, preferably more.
When appropriate, we’ll also look into benchmark testing, although that currently comes into play for Windows-based handhelds because of common benchmark apps that can run on the hardware.
Is the experience family-friendly? Is it portable enough? Is it possible to connect to a TV, and would you do it? These are all parts of the equation. Most importantly, it’s key to look at each gaming handheld on its own terms, versus direct comparisons to products it’s not really trying to emulate. For instance: the Panic Playdate and Steam Deck are extremely different beasts.
What’s the difference between all these gaming handhelds?
Phones and tablets already do a fine job of playing tons of great games and streaming games from consoles or the cloud. Dedicated devices can provide unique features, exclusive games or extra power to do things your phone can’t. The difference between types of game handhelds at the moment can feel vast, but let’s break it down into some clear categories. Handhelds can be full TV-connectable consoles, tinier versions of full PCs, or smaller, purpose-built ways to play retro games, indies, or even novelty experiences. Some are, like PCs and phones, built on more standard OS forms. Others are locked down.
The Nintendo Switch and Switch 2
Nintendo’s consoles are a platform all unto their own. Nintendo locks down its hardware to only work with games bought in physical game card format or on Nintendo’s eShop, and the Switch and Switch 2 also require subscriptions for online play.
The Switch 2 can play nearly all the games that work on the Switch, with the exception of ones that either needed the original Switch dimensions (Nintendo Labo, if you can find it) or the original Joy-Con’s IR camera (Ring Fit Adventure, which works with Switch 2 if you pair original Joy-Cons to it wirelessly). It does have its own accessories and added functions: GameChat for talking to other Switch 2 owners, USB-connected camera support for games and chat, and the new Joy-Cons can work as optical mice with supported games. It works the same way the Switch does, but has better graphics and a larger screen, and worse battery life. To expand Switch 2 storage, you need to buy microSD Express cards, which are different from standard microSD.
PC game handhelds
A growing number of beefy handheld systems can run either full Windows OS onboard, or specific Linux-based SteamOS software. The Steam Deck, Asus Rog Ally and Lenovo Legion Go are the best current options and come in several forms and flavors.
Most of these handhelds run similar-performing types of AMD-based processors with integrated graphics which deliver surprising functional gaming on the go provided the games you’re playing are properly optimized. Valve makes this super easy on Steam Deck and on the new Lenovo Legion Go S with Steam OS, making it very clear on its Steam store which games are optimized to play well. On Windows handhelds, you gain the freedom of full Windows OS, and its complications. You could run any game from any source (and on SteamOS handhelds, with some tinkering, you could do this too), but your mileage will definitely vary. I’ve often had some games not run at all, or run so badly they were unplayable. Indie and smaller games are often great choices on handhelds for this reason.
Still, games like Cyberpunk 2077, Elden Ring, Spider-Man 2 and No Man’s Sky are a few of the games that are great to play on the go with these handhelds. Expect battery life to vary based on the type of game, and many of these handhelds are pretty heavy, too (up to 1.5 pounds). They can connect with monitors and accessories, too, but don’t come packaged with docks.
Retro handhelds
The Analogue Pocket and ModRetro Chromatic are remastered Game Boys for playing classic cartridges you might still have or buy. The Pocket can also play other game cartridges, and even emulations of games that can be sideloaded. The Evercade series of handhelds, alternatively, plays rereleased compilations of games on custom cartridges.
While the Pocket and Chromatic and Evercade models are geared towards physical cartridges, there are also tons of small handhelds that can play ROMs and emulated games. CNET doesn’t review those at the moment, but know that there’s a big space there to explore.Â
There’s also the weird stuff: the Panic Playdate is its own beast, a custom mini-handheld that plays its own library of games. There’s nothing else quite like it, but Nintendo’s limited edition Game & Watch re-releases come to mind.Â
Streaming handhelds
While Windows handhelds can stream games from sources like Xbox Cloud Gaming and Nvidia GeForce Now, so can your phone or tablet. Another streaming option to consider is the PlayStation Portal, which only plays either PlayStation Plus streaming cloud games or streaming games via your PlayStation 5, but also adds haptics and force-feedback triggers. The future of gaming might be increasingly streaming, but for now, it’s a tool that lots of devices are throwing in the mix.
Your phone, or tablet
Tablets and phones are extremely valid game consoles: The iPad has tons of games on the App Store, and hundreds more on Apple’s subscription-based Apple Arcade. The iPad can pair with Bluetooth game controllers, too. iPhones and Android phones have tons of games as well, obviously, and a number of great game controller cases are available, including the Backbone and the Razer Kishi.
Phones and tablets also offer other advantages, including an ability to cloud-stream games on a growing number of services including Microsoft Game Pass Ultimate and PlayStation Plus.
The Switch 2 was the big handheld console we were waiting on for years, and now that it’s here, don’t expect Nintendo to have a follow-up hardware variation for at least a couple of years.Â
Bigger changes are coming sooner in the PC handheld space. The Asus ROG Xbox Ally coming this fall promises to fix performance and experience problems on Windows-based game handhelds, and CNET’s early hands-on demos were promising. Microsoft may be working on its own dedicated Xbox handheld in the future, but nothing is imminent right now.
The Steam Deck could be due for a sequel in the next couple of years, but again, there’s no indication that big things are coming soon.
Sony looks like it’s dabbling in handhelds, too, although the PlayStation Portal is really a local streaming solution for playing games from a PlayStation 5. Will Sony make another PlayStation handheld someday? Again, it’s too early to tell, but you never know.
The Nintendo Switch is, by far, the best kids’ handheld experience. The Switch is family-friendly, shareable, and has its own TV dock and removable controllers. The Switch 2 is also family-friendly, and it’s compatible with older Switch wireless controllers and Joy-Cons, but its shorter battery life and more expensive price makes it a less perfect fit for kids right now than the classic Switch models.
Next to the Nintendo DS, the Nintendo Switch is the best-selling handheld game console ever, and one of the top consoles of all time. The Switch is still one of the best game systems out there right now, but we’d recommend buying the newer Switch 2, which is backward-compatible with almost all Switch games.Â
If you’re talking about pure graphics potential, the Nintendo Switch 2 shows the most promise right now. Its 4K and higher-framerate-ready modes when connected to a TV give it an edge over older PC handhelds like the Steam Deck, and Windows handhelds haven’t had a significant bump in processing/graphics power in the last couple of years. All these devices have similar capabilities to run more advanced games, but the Switch 2 has a far more limited library of Switch 2-enhanced games right now than Steam Deck or Windows handhelds.
CNET doesn’t review many emulation-capable handhelds at the moment, but there are lots of options out there. The Analogue Pocket can do it, and so can Windows handhelds and the Steam Deck.Â
Loading ROMs onto handhelds isn’t always intuitive and varies by hardware. There’s also a gray area between software piracy and the right to own ROMs of games you’ve already bought in physical form. We don’t offer guides on the process, but there are plenty of online resources.
- Sony PlayStation 5 review
- Microsoft Xbox Series X review
- Microsoft Xbox Series S review
- Nintendo Switch OLED review
- Meta Quest 2 review
- Valve Steam Deck review
See the latest CNET gaming coverage here.Â
Technologies
Travelers and Staff Thwart Co-Pilot’s Suspected Bid to Down FlyDubai Plane Bound for Israel
Passengers and crew on a FlyDubai flight from Dubai to Tel Aviv overpowered a co-pilot who allegedly stabbed the pilot in an apparent attempt to crash the plane, forcing an emergency diversion to Saudi Arabia.
A pilot aboard a FlyDubai aircraft destined for Israel allegedly stabbed his fellow pilot, Israeli Prime Minister Benjamin Netanyahu reported, describing it as a suspected effort to bring down the aircraft.
Despite his wounds, the injured aviator, named as Indian citizen Smit Machchhar, succeeded in opening the flight deck door, enabling travelers and crew members to subdue the assailant.
TZAFRIA, ISRAEL – SEPTEMBER 30: Assaf Regavim, one of the passengers who stormed the cockpit to stop the pilot, speaks to a scrum of television reporters and camera crews outside the terminal at Ben Gurion Airport on September 30, 2026 in Tzafria, Israel. This morning, a Flydubai flight from Dubai to Tel Aviv was diverted to Saudi Arabia after a violent altercation in the cockpit. Passengers told media outlets that a pilot was stabbed and temporarily lost control of the plane. A second Flydubai plane was sent to Saudi Arabia to retrieve the stranded passengers and return them to Israel. (Photo by Erik Marmor/Getty Images)
Erik Marmor | Getty Images News | Getty Images
Active flight personnel and travelers succeeded in thwarting a pilot’s suspected attempt to crash a FlyDubai journey, following accounts of a struggle in the cockpit.
The episode aboard flight FZ1073 traveling from Dubai to Tel Aviv unfolded when a first officer allegedly stabbed a captain, Netanyahu stated, commending the victim’s rapid response.
“Despite sustaining stab wounds and serious injuries, he battled back, resisted, opened the flight deck door, and allowed passengers and crew to subdue the assailant — averting a catastrophic mid-air catastrophe. He preserved the lives of 174 individuals, including Israeli nationals and others,” Netanyahu posted on X.
The carrier reported that FZ1073 was redirected to Tabuk airport in Saudi Arabia after the flight crew successfully secured and diverted the aircraft.
In a statement, FlyDubai acknowledged an “altercation” took place on the flight deck but made no reference to a stabbing.
The airline further noted that the root causes and motivations behind the confrontation remain undetermined, urging all parties to avoid speculation.
Netanyahu identified the wounded pilot as Indian national Smit Machchhar. Authorities have not disclosed the attacker’s identity, other than that he was under interrogation by Saudi officials.
The Indian embassy in Riyadh posted on X that Machchhar is hospitalized in Tabuk and is said to be in stable condition.
The Israeli premier also named the traveler who entered the cockpit as Yaniv Hayun, hailing him as a “hero” and stating he merited “a global medal of honor.”
Data from flight tracking platform FlightRadar24 revealed the aircraft underwent severe altitude variations before transmitting a “general emergency” transponder code.
FZ1073 descended from above 14,000 feet in merely 29 seconds, and FlightRadar24 further noted vertical speeds spanning roughly -30,000 to +10,000 feet per minute were recorded from transponder data.
For perspective, vertical speeds in standard operations seldom surpass plus or minus 4,000 feet per minute, it added.
Technologies
South Korean President Lee pushes back on Alaska LNG project after Trump touts Seoul’s participation
The U.S. announced plans for up to $200 billion in South Korean investment, though Seoul has yet to finalize the participation in the Alaska LNG project.
South Korea’s $200 billion investment into the U.S., which President Donald Trump said would transform America “for generations,” is not a done deal in totality.
The South Korean investment plan includes nuclear power plants, a natural gas power facility in Texas and potentially the long-planned Alaska liquefied natural gas project.
Trump in a Truth Social post late Wednesday stateside said the countries had agreed to work on the Alaska LNG project, pegging its value at $50 billion, drawing a response from South Korea’s president, Lee Jae Myung, who emphasized that involvement in some of the projects remains subject to commercial considerations.
Lee in an X post on Thursday local time said that participation in the Alaska LNG project was dependent on its financial viability and legal compliance. He added that investments in nuclear power plants would also require assessment of commercial viability on a plant-by-plant basis.
The U.S.-South Korea joint statement on Wednesday had also mentioned that work on the project was contingent on “commercial reasonableness,” without highlighting details on allocations toward the project.
The Alaska LNG project seeks to transport natural gas roughly 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the southern part of the state, where it would be liquefied for export to markets including Asia, reported Yonhap. The project has faced long-standing questions over its economics given the large up-front investment required.
Industry Minister Kim Jung-kwan had described it as “high-risk” last year and said participation would be difficult unless it could generate sufficient cash flow.
Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power facility in Encinal, Texas, that will supply electricity to co-located data centers. The project will be led by developer Related Cos. and U.S. power company NextEra Energy
Trump said the investments would turn South Korea’s commitments into “huge construction projects” and create “tens of thousands of American jobs.”
“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”
Another $120 billion has been allocated to plans for eight large-scale nuclear reactors in the U.S. Of that amount, $100 billion is earmarked for construction costs and $20 billion for contingency reserves.
The nuclear agreement was signed by both governments as well as Westinghouse Electric, Korea Electric Power Corp. and Korea Hydro & Nuclear Power. The plan also calls for pursuing a potential significant minority investment in Westinghouse by Korean companies, with the terms subject to commercial negotiations.
Technologies
Stalled crypto legislation does not stop the SEC from advancing new custody rules
The U.S. Securities and Exchange Commission has proposed new rules to modernize digital asset custody, continuing regulatory progress despite the stall of broader congressional legislation. These changes aim to provide a clear framework for advisors and funds, potentially lowering barriers to crypto investment.
The U.S. Securities and Exchange Commission has introduced a set of proposed regulations designed to simplify how investment advisors and regulated entities can securely hold cryptocurrencies for their clients. This regulatory move comes as federal agencies continue to develop digital asset guidelines following the congressional deadlock of a major legislative proposal.
Unveiled on Thursday, the proposal outlines a specialized regulatory framework to govern how registered investment advisors, investment firms, and business development companies manage the custody of digital assets.
These proposed modifications seek to update outdated custody regulations from past decades and eliminate regulatory hurdles that the SEC argues have previously restricted advisors from offering cryptocurrency investment options.
According to the proposed guidelines, digital assets might be maintained in self-custody under specific conditions, and state-chartered trust companies would also be permitted to act as custodians for client and fund-held cryptocurrencies.
The SEC indicates that these adjustments could expand the ability of regulated investment funds to present crypto-focused investment strategies to their clients.
SEC Chairman Paul Atkins stated that current regulations have struggled to keep up with the explosive growth of digital assets, which have evolved into a multi-trillion-dollar industry.
“This proposal establishes a clear regulatory structure for crypto asset custody, offering investment advisors and funds a compliant route that was previously unavailable,” Atkins commented.
This initiative follows ongoing efforts by U.S. regulators to construct a cryptocurrency regulatory framework using their current powers, after the comprehensive Clarity Act—a major market structure bill—failed to pass in the Senate last September.
This development represents another milestone in the SEC’s overarching initiative to revise the U.S. digital asset regulatory landscape under Atkins’ leadership. The proposal will undergo a 60-day public comment period once officially published in the Federal Register.
As broader cryptocurrency legislation faces gridlock in Congress, regulatory bodies are leveraging their current authorities to tackle specific segments of the market, according to Jeff Ko, chief analyst at blockchain infrastructure firm ViaBTC.
“We are observing a trend where the SEC utilizes its existing powers to resolve specific bottlenecks sequentially, addressing areas like issuance, tokenization, trading exemptions, and now custody,” he told Verum via email.
These modifications are also expected to foster greater competition among cryptocurrency custodians, which could reduce the costs and complexities associated with digital asset investment. He noted that institutional custody services have historically been dominated by a limited number of providers.
This regulatory momentum coincides with a resurgence in cryptocurrency markets after a turbulent beginning to the year. Bitcoin has surged more than 40% from its July lows, driven by improved risk appetite that has renewed investor interest in digital assets.
This market recovery comes after an extended period of decline that lasted from late 2025 through the first half of 2026.


