EddieJayonCrypto
13 May 25
SEC Chairman Paul Atkins opened a roundtable discussing the migration of securities from traditional databases to blockchain-based ledger systems, emphasizing a shift from enforcement-based regulation to clear rulemaking to keep pace with innovation. The discussion focused on three areas: issuance, ...
SEC Chairman Paul Atkins is driving a pivotal shift in regulatory approach, prioritizing clear frameworks over enforcement to facilitate the migration of securities onto blockchain-based systems.Atkins envisions a transformation in securities markets akin to the digital revolution seen in the music industry, focusing on improved issuance, custody, and trading of on-chain securities with modernized regulations and clearer guidelines.The SEC is committed to fostering innovation by updating outdated registration forms and revisiting custody requirements, including options for self-custody. Broader trading opportunities are also on the horizon, with support for integrated “super apps” and modernization of Alternative Trading System regulations.Reflecting on the SEC's past, Atkins critiqued the initial "head-in-the-sand" and subsequent aggressive enforcement stance toward crypto, advocating now for rulemaking through proper channels rather than ad hoc enforcement actions.Highlighting regulatory mismatches, he noted documents like the S-1 form are ill-suited for crypto assets, emphasizing the need for innovation-friendly regulations instead of forcing crypto into old frameworks.Atkins, appointed SEC Chair in April, expressed eagerness to collaborate with the administration and Congress to establish the U.S. as the leading global market for crypto assets.The SEC recently settled a longstanding $50 million case with Ripple, signaling a potential warming of relations between regulators and crypto firms.The ongoing roundtable series on tokenization, with the next session focusing on DeFi scheduled for June 9, underscores the SEC’s evolving stance as securities increasingly migrate from traditional databases to blockchain-ledger systems.This regulatory evolution points to a new era where innovation in the crypto realm is met with clarity, paving the way for more secure, liquid, and versatile markets anchored by blockchain technology.