Paul Atkins' speech, the new SEC Chairman, at a roundtable in Washington represents a potential turning point in U.S. cryptocurrency regulation, outlining three key directions.
Token Issuance: New Approaches and Opportunities
Paul Atkins emphasized the need for a new basis for token registration, which could include:
- A new streamlined registration format for crypto asset issuers focused on smart contract audits and decentralized governance models. - Revival of the Safe Harbor initiative, providing projects with a three-year runway to decentralize without fear of regulatory enforcement. - Clear definitions for 'non-security' tokens to reduce ambiguity.
Thus, the SEC may offer developers a clear pathway instead of legal battles.
Custody Rules: Rethinking Security of Assets
Atkins announced plans to revise custody rules, noting that:
- The definition of qualified custodians should be expanded to include crypto-native companies and decentralized protocols meeting security criteria. - Support for self-custody of crypto assets for investment advisors and funds. - Introducing technologies like multi-signature wallets and multi-party computation into custody regulations.
This shift aims to improve the operating conditions for institutions and users.
Trading Platforms: From Non-Compliant to Regulated
In his speech, Atkins highlighted the need for changes for trading platforms, including:
- Modernizing the existing alternative trading system (ATS) framework to accommodate crypto assets with streamlined registration requirements. - Exploring the possibility of including crypto assets on major exchanges like Nasdaq and NYSE. - Creating a new class of broker-dealers for crypto market intermediaries.
The SEC aims to create more stable conditions for cryptocurrency trading.
Paul Atkins's speech marks not only a change in tone but a new direction for cryptocurrency regulation in the U.S. Efforts to translate these ideas into concrete legislative initiatives are just beginning, but this could open up new opportunities for developers, exchanges, and investors.
