Major US SEC revisions support crypto, blockchain trading

The leader of the US securities regulator announced comprehensive plans on Thursday aimed at reforming capital markets regulations to better integrate cryptocurrencies and blockchain-based trading. This development represents a significant victory for the digital asset sector, which has consistently advocated for customized regulatory frameworks. Securities and Exchange Commission Chair Paul Atkins stated that he has instructed commission staff to develop guidelines for identifying when a crypto token qualifies as a security, along with proposals for various disclosures and exemptions.
Atkins indicated that he has requested SEC staff to collaborate with firms aiming to provide tokenized securities, which are blockchain-based representations of stocks or funds. “This represents more than a regulatory shift; it is a generational opportunity,” Atkins stated in a speech before the America First Policy Institute, a think tank established to support President Donald Trump’s policy agenda. If implemented, Atkins’ proposals would signify a significant transformation in U.S. securities regulation, potentially allowing cryptocurrency to become more integrated with conventional finance.
His plans for crypto were revealed just a day after a cryptocurrency working group established by Trump urged the SEC to develop new regulations tailored to digital assets, while also delineating the administration’s positions on pivotal crypto legislation. A significant report from the White House urged the SEC and the Commodity Futures Trading Commission to leverage their current powers to “immediately enable the trading of digital assets at the federal level.”
During the previous campaign, Trump sought the support of cryptocurrency enthusiasts by declaring his intention to be a “crypto president” and advocating for the increased acceptance of digital assets. This stands in sharp contrast to the actions of previous Democratic President Joe Biden’s regulators, who, aiming to safeguard Americans from fraud and money laundering, imposed restrictions on the industry. The SEC, under the Biden administration, has initiated legal action against exchanges such as Coinbase and Binance, among others, claiming violations of U.S. laws. The SEC under Trump’s administration has subsequently discontinued those cases.