Market News

SEC's Strategic Direction for Crypto Regulation Revealed by Chair Paul Atkins

At the ETH Denver conference, SEC Chair Paul Atkins shared insights into the future of cryptocurrency regulation during a period of congressional stagnation.

He announced that the SEC is embarking on a broad regulatory agenda, notably through its initiative dubbed "Project Crypto."

This collaboration with the Commodity Futures Trading Commission (CFTC) aims to define how the SEC assesses whether a crypto asset constitutes an investment contract.

Atkins mentioned the development of an "innovation exemption," which would allow limited trading of select tokenized securities on innovative platforms.

Additionally, the agency is working on proposals to create sensible methods for raising capital via crypto asset sales.

To offer greater certainty to market operators, the SEC plans to implement no-action letters and exemptive orders, especially concerning digital wallets.

Custody rules will also be a focus, specifically how broker-dealers will manage non-security crypto assets, such as stablecoins.

Furthermore, the SEC is updating transfer agent regulations to accommodate blockchain technology's evolving role in ownership record-keeping.

Responding to concerns about declining crypto prices, Atkins emphasized the need for regulators to establish stable rules rather than react to market fluctuations.

He concluded by advocating for ongoing collaboration and constructive dialogue with various stakeholders in the crypto space.