SEC Indica Crypto Securities Regulatory Reforms
The U.S. Securities and Exchange Commission (SEC) is expected to rethink its regulations of crypto securities. On May 12, at the SEC’s Crypto Task Force roundtable, Chair Paul Atkins reported that the agency is creating a new framework solely for digital assets that are deemed securities.
Old Rules Don’t Apply to New Tech, Atkins States
Atkins emphasized that current rules on securities are not best tailored to blockchain-based products. “One of my priorities during my chairmanship will be to establish a rational regulatory framework for crypto asset markets,” he stated. The aim, he asserted, is to provide the issuance, trading, and custody of digital assets with bright-line rules while continuing to deter fraud and protect consumers.
SEC Acknowledges Regulatory Constraints
Atkins elaborated, during the roundtable, that only four crypto issuers have succeeded in registering their products under SEC guidelines. He described this as not an industry failure, but regulatory system failure itself, which he argues must adapt to support legitimate innovation.
Innovation Potential in Tokenized Securities
Atkins also highlighted the ability of tokenized securities to reshape financial markets. He compared their rise to the digital revolution in the music sector, mentioning automated dividend disbursement and added liquidity as some of what blockchain-based assets can enable.
Breaking the Gensler Era
This new approach marks a clear departure from former SEC Chair Gary Gensler’s stance that existing laws were sufficient for crypto oversight. Gensler’s interpretation had drawn criticism from industry leaders who found the current framework overly rigid and unclear.
Hester Peirce to Lead Crypto Task Force
The SEC’s Crypto Task Force, now in charge, is led by Commissioner Hester Peirce—often dubbed “Crypto Mom” due to her endorsement of prudent regulation in the industry. Peirce’s inclusion suggests a more open and even-handed approach to crafting future crypto policy.
