SEC Chair Unveils Plans for New Crypto Securities Rules

The U.S. Securities and Exchange Commission (SEC) is set to introduce new rules for crypto assets that qualify as securities, according to SEC Chair Paul Atkins. Speaking at the agency’s Crypto Task Force roundtable on May 12, Atkins revealed that the SEC is actively working on a regulatory framework tailored to the rapidly evolving crypto industry.

Atkins acknowledged that current regulations are inadequate for the new asset class, emphasizing that the SEC's goal is to create rules that will both rationally govern the sector and protect consumers. He stressed that a key priority under his leadership is to establish clear guidelines for the issuance, custody, and trading of crypto assets while discouraging bad actors from breaking the law.

Despite the challenges, Atkins pointed to the potential for growth, noting that only four crypto issuers have successfully registered under existing SEC rules, a shortcoming he attributed to regulatory failures rather than industry shortcomings. He also highlighted the innovative potential of the sector, particularly in the area of tokenized securities, which could revolutionize markets in ways similar to how the digital revolution transformed the music industry. Tokenized securities, Atkins explained, can automate dividends, unlock liquidity, and create entirely new market structures.

These comments mark a shift from the SEC’s previous approach under former Chair Gary Gensler, who maintained that existing securities regulations were sufficient for the crypto industry. Gensler’s stance drew criticism from the sector, which argued that the current laws were too restrictive for such a fast-growing space. The SEC’s newly formed Crypto Task Force, led by pro-crypto Commissioner Hester Peirce, is tasked with addressing these regulatory gaps and fostering a more conducive environment for innovation in the crypto space.