New regulations for crypto securities are currently being developed by the U.S. Securities and Exchange Commission, as disclosed by Chair Paul Atkins.
The Securities and Exchange Commission is creating opportunities for crypto securities. During the agency’s Crypto Task Force roundtable on Monday, May 12, SEC Chair Paul Atkins revealed that the commission is drafting new regulations. These forthcoming rules will be specifically applicable to crypto assets classified as securities.
Atkins stated that existing regulations do not align well with 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.
Atkins emphasized that only four crypto issuers have successfully registered their offerings under SEC regulations. He argued that this outcome reflects a regulatory shortcoming rather than a failure of the industry and highlighted the sector’s innovative potential.
SEC Highlights Innovative Promise of Crypto Securities
SEC Chair Paul Atkins highlighted the significant innovative potential of tokenized securities, comparing their impact to the digital transformation of the music industry. He stated that tokenized securities can automate dividend distribution, improve liquidity, and create entirely new market frameworks.
These statements mark a notable departure from the stance of former SEC Chair Gary Gensler. The previous leadership maintained that existing securities regulations sufficiently covered crypto assets. However, the industry criticized this position, arguing that traditional securities laws were too restrictive for the fast-evolving crypto sector.
The SEC has established a Crypto Task Force to address regulatory issues in the sector. SEC Commissioner Hester Peirce, known for her supportive stance on cryptocurrency, is leading the task force.
