TLDR

SEC ends ad hoc crypto rules, moves to formal guidelines.
Clearer rules coming for token classifications and custody.
Broker-dealers may soon trade both crypto and securities.
SEC plans exemptions to support crypto innovation.
New SEC approach aims to boost U.S. crypto growth.

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has announced a broad regulatory shift to align crypto oversight with technological advancements. Speaking during the SEC’s latest crypto task force roundtable, Atkins detailed the Commission’s intent to establish clear and structured guidelines for issuing, custody, and trading digital assets.

SEC Chair Paul Atkins says his top priority is establishing a “rational regulatory framework” for crypto.

Now are we done talking,

or is someone finally going to press “Start”. pic.twitter.com/0MJEdUDx9K

— Vandell | Black Swan Capitalist (@vandell33) May 12, 2025

He emphasized that the agency will no longer rely on ad hoc enforcement actions to guide crypto regulation. Instead, the SEC will utilize formal rulemaking, interpretive tools, and exemptive powers to accommodate digital assets. Atkins criticized past approaches that lacked adaptation to blockchain technology, noting that such regulatory ambiguity has hindered legitimate innovation in the sector.

Revisiting Token Classifications and Custody Rules

The SEC will create detailed guidance for crypto token distributions that qualify as securities or fall under investment contract definitions. Atkins underscored the need for regulatory clarity to determine when projects must register with the agency and what disclosures are required. This move aims to reduce legal uncertainty for developers and investors.

Custody remains a key concern. Atkins described the current rules as outdated and highlighted the need to address challenges caused by SAB 121. He suggested that registered investment advisers and funds should be allowed to engage in self-custody if they meet specific risk and security conditions. He also proposed replacing the current special purpose broker-dealer framework with a more practical structure that supports new custodial solutions.

Broker-Dealer Flexibility and ATS Regulation

Atkins proposed adjustments allowing registered broker-dealers with alternative trading systems (ATS) to handle both securities and non-securities, such as bitcoin and ether. This proposal reflects a shift towards enabling unified trading platforms that do not unnecessarily force firms to segregate offerings.

He also noted that no federal law explicitly prohibits combining the trading of securities and non-securities, suggesting that ATS rules should be updated to accommodate digital assets. These changes could increase platform efficiency and reduce friction in U.S.-based crypto trading.

New Direction Emphasizes Collaboration and Innovation

The SEC’s new leadership aims to work closely with lawmakers to consider conditional exemptions for emerging crypto products. Atkins explained that providing exemptive relief, where appropriate, could allow the market to test and scale new solutions while remaining within a regulated framework.

He reiterated the Commission’s commitment to fostering innovation without compromising investor protection. By supporting modern technologies, the SEC seeks to ensure the United States remains a competitive environment for digital asset growth.

Atkins concluded that the agency’s updated approach marks a new crypto-regulation era. The SEC focuses on providing regulatory clarity and flexibility to promote responsible innovation across the crypto asset market.

 

The post SEC Chair Paul Atkins Embraces Crypto Evolution with Clear Rules and Flexibility appeared first on CoinCentral.

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Filed under: News - @ May 12, 2025 8:28 pm