New SEC Chair Races to Overhaul Outdated Crypto Rules

CN
10 hours ago

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins delivered his first speech as chair of the agency after being sworn in, speaking at the third Crypto Task Force roundtable on April 25 in Washington D.C. Expressing appreciation to his colleagues and SEC staff for their warm welcome, Atkins reaffirmed his priorities, stating:

I am eager to tackle long festering issues, such as regulatory treatment of digital assets and distributed ledger technologies.

He praised Commissioner Hester Peirce for her leadership in digital asset policy: “Commissioner Peirce is the right person to lead the effort to come up with a rational regulatory framework for crypto asset markets.” Peirce leads the Crypto Task Force, overseeing its initiatives and guiding its regulatory approach to digital assets. Atkins also recognized the panelists for their commitment and expertise in helping the agency craft a more effective regulatory approach.

Focusing on the transformative power of blockchain innovation, Atkins highlighted the potential improvements to the financial system. He projected substantial benefits, stating: “I expect huge benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation.” The new SEC chair added:

Market participants engaging with this technology deserve clear regulatory rules of the road. Innovation has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.

Looking ahead, he underlined the need for collaborative efforts across government, emphasizing: “I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational, fit-for-purpose regulatory framework for crypto assets.”

The roundtable focused heavily on the practical barriers that SEC registrants face when attempting to custody digital assets under current federal securities laws. Atkins invited participants to consider whether amendments to the custody rules under the Exchange Act, Advisers Act, or Investment Company Act are necessary to account for crypto asset realities. He questioned if the “special purpose broker-dealer” structure remains viable or if a new broker-dealer regime tailored to crypto assets is needed. Citing signs from the market itself, Atkins acknowledged that the “current framework badly needs attention” and encouraged participants to help provide critical guidance for shaping future rules.

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