The U.S. SEC is actively working on new rules for crypto securities, Chair Paul Atkins revealed.
The Securities and Exchange Commission is opening doors for crypto securities. On Monday, May 12, SEC Chair Paul Atkins, at the agency’s Crypto Task Force roundtable, revealed that the agency is developing new rules on crypto. These rules will specifically apply to crypto assets that qualify as securities.
Current regulations, Atkins stated, don’t fit the new industry. The goal of a new regulatory framework, Atkins added, will be to develop rules to rationally govern this asset class. At the same time, the new rules will protect consumers, he stressed.
“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 underlined that only four crypto issuers have successfully registered their offerings under the SEC’s rules. He added that this was a failure on the part of the regulators, not the industry. What’s more, he touted the innovative potential of the industry.
Crypto securities have significant potential in innovation: SEC
The SEC Chair stated that tokenized securities hold great innovative potential, comparing them to the digital revolution in the music industry. Tokenized securities can automatically issue dividends, unlock liquidity, and create completely new market structures.
These remarks are a clear departure from the SEC’s former leadership under Chair Gary Gensler. The former Chair believed that current securities regulations were sufficient to govern crypto assets. This drew criticism from the industry, which saw securities laws as too restrictive for the emerging sector.
The SEC has formed a Crypto Task Force, designed to tackle this regulation. Its head is SEC Commissioner Hester Peirce, known for her pro-crypto stance.