SEC Chairman Calls for Unified Regulation of Securities and Non-Securities
SEC Chairman Paul Atkins has proposed a new regulatory framework that would allow registered firms to custody and trade both securities and non-securities, such as Bitcoin and Ethereum, under a single, regulated structure.
Streamlining Operations and Reducing Costs
Atkins believes that this unified approach would streamline operations, reduce costs for investors, and accelerate the integration of digital assets into a federally supervised environment.
Enabling Innovation in a Regulated Environment
During his remarks at the SEC Speaks conference, Atkins emphasized the importance of allowing SEC registrants to custody and trade a wide range of assets under one roof. This move, he believes, would not only benefit investors by reducing costs but also bring non-security trading into a regulated environment at the federal level more efficiently.
Formal Rule Proposals for Crypto Markets
Atkins confirmed that the SEC is in the process of drafting formal rule proposals to govern crypto markets. While formal rulemaking is underway, SEC staff are providing informal guidance to clarify how existing laws apply to digital assets.
Clearing Ambiguity and Providing Structure
Atkins acknowledged the agency’s past regulatory approaches, describing them as initially being reactive before shifting to “regulation through enforcement.” He emphasized the importance of replacing ambiguity with structured engagement and clear rules to provide certainty for crypto market participants.
Institutional Reset Underway
Under Atkins’ leadership, the SEC is undergoing an institutional reset. The agency is seeking Congressional approval to dissolve its Strategic Hub for Innovation and Financial Technology (FinHub) and integrate its functions throughout the SEC.
Promoting Innovation Across the SEC
Atkins aims to ensure that innovation is ingrained in the SEC’s culture as a whole, rather than being concentrated in one office. He wants to shift the focus from enforcement to supporting innovation and providing a platform for regulatory clarity.