In a keynote address at the U.S. Securities & Exchange Commission Crypto Task Force roundtable on tokenization, SEC Chairman Paul S. Atkins set out a plan to develop a “fit-for-purpose” regulatory framework for on-chain securities and broader crypto asset markets. He indicated the SEC will pivot away from policymaking via ad hoc enforcement and instead use rulemaking, interpretive guidance, and exemptive authority to establish clearer obligations for market participants, with enforcement focused on violations such as fraud and manipulation. Across three priority areas, Atkins called for clearer guidelines for distributions of crypto assets that are securities or subject to an investment contract, noting that only four issuers have used registered offerings or Regulation A and that current disclosure requirements and security-status uncertainty have deterred issuance. He asked staff to consider additional guidance, registration exemptions, and safe harbors. On custody, he supported greater optionality following the rescission of Staff Accounting Bulletin No. 121, including clarifying which entities qualify as “qualified custodians” under the Investment Advisers Act and Investment Company Act, considering reasonable exceptions and potential pathways for adviser and fund self-custody, and potentially repealing and replacing the special purpose broker-dealer framework while clarifying how customer protection and net capital rules apply. On trading, he backed allowing registrants to meet demand for multi-product platforms, asked staff to modernize the alternative trading system regime to better accommodate crypto assets, explore further guidance or rulemaking to enable listing and trading of crypto assets on national securities exchanges, and consider conditional exemptive relief to support compliant onshore innovation. He positioned the Crypto Task Force, established by Commissioners Uyeda and Peirce, as the internal coordination mechanism for delivering this agenda and indicated an intention to engage with the Administration and Congress.
U.S. Securities & Exchange Commission 2025-05-12
U.S. Securities & Exchange Commission chairman outlines shift from enforcement to rulemaking for crypto asset issuance custody and trading
SEC Chairman Paul S. Atkins proposed a regulatory framework for on-chain securities and crypto markets, moving from ad hoc enforcement to rulemaking. He emphasized clearer guidelines for crypto asset distributions, custody, and trading, advocating for registration exemptions, safe harbors, and modernized trading systems. The SEC's Crypto Task Force will coordinate this agenda, with engagement from the Administration and Congress.