Market News

SEC Targets Crypto Regulation Overhaul with Key Focus Areas

The U.S. Securities and Exchange Commission (SEC) is poised to introduce a significant rewrite of its crypto regulations, aiming to stimulate innovation in the digital asset sector.

At a recent crypto roundtable, SEC Chair Paul Atkins highlighted three critical focus areas: issuance, custody, and trading.

Atkins acknowledged that previous regulatory ambiguity has hindered the growth of compliant avenues for companies wishing to issue crypto assets.

He has directed SEC staff to explore the possibility of providing additional guidance and exemptions to facilitate crypto asset issuance within the United States.

In the realm of custody, Atkins expressed a desire for greater flexibility regarding how firms manage crypto assets, emphasizing the need for modern custodial practices.

He noted that recent rescissions of previous guidelines have already made it easier for companies to enter the crypto custodial space.

Regarding trading, Atkins proposed wider flexibility to accommodate market demand, suggesting that existing rules could be adjusted to benefit the crypto market.

He stressed the importance of keeping innovation within U.S. borders, warning against forcing market participants to seek opportunities abroad.

While there is optimism surrounding these proposals, some stakeholders have raised concerns about maintaining adequate investor protection.

Overall, the SEC's renewed focus on a more sensible regulatory approach could reshape the crypto landscape in the U.S. and reinforce the country's position as a hub for digital innovation.