The SEC’s chairman, Paul Atkins, recently outlined a major shift in how the agency will regulate cryptocurrencies and blockchain technology. He envisions a future where traditional finance and digital assets seamlessly coexist.
Streamlining Crypto Issuance
Atkins pointed out that only a handful of crypto issuers have used the SEC’s existing registration process. He believes the current rules are too cumbersome and suggested creating simpler pathways for crypto offerings, possibly through new exemptions or safe harbors. This would allow companies to meet disclosure requirements without unnecessary paperwork.
Rethinking Custody and Brokerage
The SEC has already eliminated an outdated rule that complicated digital asset custody. Atkins wants to go further, reviewing who qualifies as a “custodian” for digital assets. He also hinted at modernizing rules for broker-dealers, potentially allowing for “super apps” that offer trading in both traditional stocks and cryptocurrencies. This would involve updating rules for alternative trading systems and potentially allowing national exchanges to list tokens.
A Unified Approach to Regulation
To improve efficiency and clarity, the SEC has formed a new Crypto Task Force. This team will bring together experts from different areas of the agency to create a more coordinated approach to regulation. This is a big step toward providing clearer guidance for businesses and investors.
The Bottom Line
Atkins emphasized the need for tailored rules for three key areas: issuance, custody, and trading of digital assets. He stressed that these new rules will protect investors while fostering innovation. He also promised to focus enforcement efforts on fraud and manipulation, rather than using enforcement to create policy.