Paul Atkins, the chair of the Securities and Exchange Commission, laid out his vision for overhauling the agency's cryptocurrency policies on Monday, saying he plans to establish guidelines for distributions of crypto tokens that are securities and consider whether additional exemptions are necessary.
In remarks made at the outset of a public meeting of the SEC's crypto task force, Atkins also indicated that the SEC may consider tweaking its rules so that registered broker-dealers with an alternative trading system - or ATS - can also facilitate trading in non-securities, such as bitcoin or ether, the two largest 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," Atkins said.
Atkins, who was sworn in last month, has said his top priority as SEC chair will be to have a firm foundation for digital assets and keep politics out of securities laws.
The crypto industry has long clashed with regulators over how federal securities laws translate to digital assets, with many arguing that most crypto tokens are more akin to commodities. Tokens classified as securities would require firms to register with the SEC and provide certain disclosures to investors.
President Donald Trump, who campaigned on promises to be a "crypto president," has pledged to reverse an industry crackdown under former President Joe Biden's SEC, which sued multiple crypto companies, including Coinbase and Kraken, alleging they had flouted its rules. The SEC's new leadership has agreed to withdraw or pause many of those cases.
Republican SEC Commissioner Hester Peirce is leading the SEC's crypto task force, which is charged with developing rules and guidance for the sector.
