SEC Chairman discusses 3 key areas of cryptocurrency—Upcoming major policies

The SEC is rolling out a groundbreaking amendment to cryptocurrency laws that could make a strong push for the innovation of digital assets in the United States, redefining issuance, custody, and trading to promote the continuous growth of the market. Crypto Shakeup is about to happen: SEC makes a strong push for rewriting the core framework The Chairman of the U.S. Securities and Exchange Commission (SEC) Paul Atkins discussed a detailed framework for managing digital assets at the cryptocurrency roundtable on May 12, emphasizing a strong focus on three pillars of regulation: issuance, custody, and trading. Pointing out how the Commission's previous handling of cryptocurrencies was both indifferent and adversarial, Atkins committed to a clear change in policy. He stated: "I want the Commission to establish clear and reasonable guidelines for determining whether cryptocurrency assets are securities or fall under investment contracts," laying the groundwork for what he called a more reasonable strategy compatible with innovation. Regarding the issuance of cryptocurrency assets, Atkins acknowledged that regulatory ambiguity has hindered companies from utilizing compliance channels such as registered offerings and Regulation A. He stated: I have requested the staff of the SEC to consider whether additional guidance, exemptions from registration, and safe harbors are needed to create a pathway for the issuance of cryptocurrency digital assets in the United States. "I believe that the Commission has full authority to make decisions under the securities laws to adapt to the cryptocurrency industry and I intend to do so," he continued. Atkins also noted that while some interpretive guidance has been issued by SEC staff, further actions by the Commission are necessary to create a sustainable regulatory environment for emerging digital services. Regarding the custody issue, the chair of the SEC has voiced strong support for expanding the ways registrants manage digital assets: "I support providing registrants with more options in determining how to custody digital assets. The staff of the Commission has recently removed a significant barrier for companies wishing to provide custody services for digital assets by rescinding Staff Accounting Bulletin No. 121. "He continues to address existing limitations: "Broker-dealers are not and have never been restricted from acting as a custodian for digital assets that are not securities or securities of digital assets, but the Commission may need to act to clarify the application of customer protection and net capital rules to this activity." Atkins suggested that new rules may be needed to legitimize modern custodial practices, including self-custody. When discussing transactions, Atkins called for greater flexibility to reflect the real needs of the market. He revealed: I support allowing registrants to trade more types of products on their platform and meet market demand, activities that previous Commissions have prohibited. He pointed out that the current rules for alternative trading systems could be reconsidered and adjusted for cryptocurrencies. To prevent innovation from moving to foreign jurisdictions, Atkins explained: "While the Commission and its staff work to build a comprehensive regulatory framework for digital assets, securities market participants should not be forced to go abroad to innovate with blockchain technology. I want to explore whether conditional exemptions are appropriate for both registered and unregistered entities looking to bring new products and services to market that might otherwise be incompatible with the current rules and regulations of the Commission." While industry supporters may welcome these remarks as a long-anticipated roadmap adjustment, skeptics still express concern about potential loopholes in investor protection measures. However, proponents argue that an appropriate regulatory framework could enable responsible innovation and maintain the competitiveness of the United States in the evolving cryptocurrency landscape.