New regulations for crypto securities are currently being developed by the U.S. Securities and Exchange Commission, as disclosed by Chair Paul Atkins.
Opportunities for crypto securities are being created by the Securities and Exchange Commission. On Monday, May 12, during the agency’s Crypto Task Force roundtable, it was revealed by SEC Chair Paul Atkins that new regulations are being drafted. These forthcoming rules will be specifically applicable to crypto assets classified as securities.
It was stated by Atkins that existing regulations are not well-suited to the evolving crypto industry. He emphasized that the objective of the new regulatory framework will be to establish rules that sensibly oversee this asset class while also ensuring consumer protection.
A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody and trading of crypto assets while continuing to discourage bad actors from violating the law,
Atkins said.
It was emphasized by Atkins that just four crypto issuers have managed to register their offerings in compliance with the SEC’s regulations. He asserted that this outcome reflects a shortcoming on the part of regulators rather than the industry itself. Additionally, the sector’s innovative potential was highlighted by him.
SEC Highlights Innovative Promise of Crypto Securities
The significant innovative potential of tokenized securities was noted by the SEC Chair, who drew a comparison to the digital transformation experienced by the music industry. It was stated that tokenized securities are capable of automating dividend distribution, enhancing liquidity, and establishing entirely new market frameworks.
These statements have been viewed as a notable shift from the approach taken by former SEC Chair Gary Gensler. It was maintained by the previous leadership that existing securities regulations were adequate for overseeing crypto assets. This stance was met with criticism from the industry, where securities laws were regarded as overly limiting for the rapidly developing sector.
A Crypto Task Force has been established by the SEC to address regulatory matters in the sector. The task force is being led by SEC Commissioner Hester Peirce, who is recognized for her supportive position on cryptocurrency.
