The new chairman of the SEC reiterated the need for a complete reform of Crypto rules and promised to end "enforcement regulation".

Atkins likened the transformation of securities to a blockchain-based model to the digital revolution in the music industry, stating that on-chain assets could fundamentally change the capital market in the same way that MP3s reshaped audio distribution.

Original Source: cryptoslate

Compiled by: Blockchain Knight

SEC Chairman Paul Atkins called for a comprehensive modernization of U.S. crypto asset policy and outlined a three-part strategy for reforming the regulation of issuance, custody, and trading.

On May 12, Atkins made the above statement during the keynote speech at the latest roundtable meeting of the SEC Crypto Assets Special Working Group, which discussed the potential of tokenization and its upgrade of the Capital Market.

Atkins compares the transformation of securities to a blockchain-based model to the digital revolution in the music industry, believing that on-chain assets could fundamentally change the capital market just as MP3s reshaped audio distribution.

Under the leadership of Atkins, the SEC's primary task is to tailor a "reasonable regulatory framework" for the digital asset market, breaking away from years of unpredictable enforcement patterns that have hindered innovation.

He promised that policy-making would henceforth be conducted through formal channels, rather than taking ad-hoc actions, and reiterated his recent statements.

Atkins said: "The SEC has entered a new phase."

Three-pronged Reform Plan

Atkins has laid out an ambitious reform agenda focused on promoting compliant Crypto asset issuance, expanding legitimate custody options, and modernizing the trading framework.

He pointed out that only a few projects successfully registered their issuance products through the SEC's traditional channels, and noted that outdated disclosure forms and legal uncertainties are the main obstacles.

To address this issue, regulators will consider developing more appropriate exemption provisions, safe harbor rules, and disclosure guidelines for digital native assets. He emphasized that the temporary staff guidelines are only temporary and that a complete set of rules needs to be established by the committee to create lasting standards.

On custody, Atkins supports the repeal of Accounting Announcement No. 121, which previously imposed restrictive measures on the holding of Crypto assets. He called for a broader clarification of the qualifications of "qualified custodians" and stated that custody rules should keep pace with the times to reflect self-custody solutions and emerging best practices in the industry.

In terms of trading, Atkins stated support for allowing brokerage proprietary traders to provide comprehensive services on a unified platform, including both Crypto assets and non-Crypto assets. He also suggested the possibility of conditional exemption relief to allow the launch of new products that may not yet comply with existing regulations.

Consolidating the United States' Leadership in the Crypto Space

Atkins echoed President Donald Trump's call to make the United States the "global crypto capital" and warned that if the SEC cannot adapt to changing circumstances, innovation will flow overseas.

He praised the co-chairs of the newly established Crypto Asset Special Working Group, Mark Uyeda and Commissioner Hester Peirce, which aims to break down internal barriers and accelerate the issuance of guidance documents across the organization.

In his speech, Atkins emphasized the necessity of formulating rules that can both protect investors and support innovation. He stressed that combating fraud remains a top priority, but the SEC's enforcement approach will return to its "original intent," which is to regulate violations of clearly defined obligations, rather than using enforcement to create policy.

The SEC is expected to continue advancing additional rulemaking, staff guidance, and inter-agency coordination over the next few months, striving to make the United States a leader in the tokenized financial infrastructure space.