SEC Chairman Paul Atkins signals cryptocurrency regulation direction, clarifies investment contract framework, and advances innovation exemptions and rulemaking

ChainCatcher News, the official website of the U.S. Securities and Exchange Commission published a speech by Chair Paul Atkins at the ETHDenver conference, which outlined the agency’s direction for cryptocurrency regulation, mainly including:

  1. Clarification of the “Investment Contract” Framework: The commission will study and publish a framework to clarify under what circumstances crypto assets constitute investment contracts, as well as their formation and termination mechanisms.

  2. Innovation Exemptions: Consider establishing innovation exemptions to allow pilot trading of certain tokenized securities under restricted conditions, including limited trading on new platforms such as automated market makers, to accumulate experience for long-term regulatory frameworks.

  3. Advancement of Rules and Guidelines: Plans to initiate or promote rulemaking on topics such as crypto asset financing pathways, broker-dealer custody of non-security crypto assets (including payment stablecoins), and modernization of transfer agent rules; and to continue providing clarity through no-action letters and exemption orders for scenarios like wallets and user interfaces that do not require registration.

  4. Regulatory Philosophy: Paul Atkins emphasized that regulators should not react to short-term price fluctuations. The SEC’s responsibility is to ensure full disclosure of information and clear rules, enabling market participants to make decisions in a transparent environment, rather than “protecting prices.”

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