Ongoing changes in cryptocurrency regulation have led to new initiatives by the U.S. Securities and Exchange Commission (SEC) under Paul Atkins. The new strategy focuses on simplifying regulation and engaging with the crypto industry.
SEC's Priorities in Token Classification
The new SEC leadership is focused on eliminating confusion regarding token classifications. Paul Atkins advocates for separating digital assets into 'security' and 'non-security' categories, which will clarify the registration requirements for projects like Ripple.
"Atkins' plan will allow projects to self-assess using objective criteria," sources reported.
Updating Cryptocurrency Custody and Trading Rules
Under Atkins' leadership, there are plans to modify custody rules, allowing traditional financial institutions to safely engage with digital assets. It is also suggested to enable alternative trading systems (ATS) to bundle digital assets with traditional securities, simplifying trading processes and increasing market liquidity.
Regulatory Clarity and Industry Engagement
Atkins is planning to replace the unclear memos and advice from SEC with formal recommendations that will be published in the Federal Register, thereby reducing uncertainty. He also aims to engage companies more actively in the discussion process, allowing the regulations to be adapted to the realities of the crypto industry.
"Compliance traps are created by uncertainty. That era is now over," Atkins noted.
The agenda set forth by Paul Atkins marks the beginning of an entirely new chapter in U.S. cryptocurrency regulation. Clear classification, refreshing custody rules, and active industry engagement create an environment for growth and security in the digital asset market.
