The head of the Securities and Exchange Commission, Paul Atkins, talked about his plans to change the agency’s cryptocurrency rules on Monday. He said that he would set rules for the distribution of crypto tokens that are securities and look into whether more exemptions are needed.
Atkins said at the start of a public meeting of the SEC’s crypto task force that the agency might change its rules so that registered broker-dealers with an alternative trading system (ATS) can also help people trade non-securities like bitcoin or ether, which are the two biggest cryptocurrencies.
“A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody and trading of crypto assets while continuing to discourage bad actors from violating the law,” said Atkins.
Atkins was sworn in as chair of the SEC last month. He has said that his main goal as chair will be to make sure that digital assets are safe and that politics don’t affect stock laws.
Federal securities rules apply to digital assets, but the crypto industry and regulators have been arguing for a long time about how they should be interpreted. Many crypto tokens are seen as more like commodities. If firms wanted to sell tokens that were considered securities, they would have to register with the SEC and give buyers certain information.
Trump ran on claims to be a “crypto president,” and he has promised to undo the SEC’s crackdown on the industry under former President Joe Biden. The SEC sued several crypto companies, including Coinbase and Kraken, saying they had broken its rules. Many of those cases will be dropped or put on hold by the SEC’s new leadership.
The SEC’s crypto task group is being led by Republican Commissioner Hester Peirce. Its job is to come up with rules and guidelines for the sector.
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