A significant development emerged yesterday from a key US regulatory figure, as they emphasized a renewed vision for transformation. The move towards integrating stocks and bonds with blockchain technology could revolutionize the methods by which investors buy, sell, and manage their assets.

The statement came from new US Securities and Exchange Commission Chairman Paul Atkins, who addressed a roundtable in Washington focused on tokenization. He likened this shift to the evolution of music from physical formats to digital streaming. In his speech, he cautioned that an adherence to outdated regulations could stifle innovation and drive it offshore, emphasizing his commitment to collaborating with fellow commissioners to formulate new policies.

Evaluating Issuance Standards

Atkins pointed out a concerning statistic: only four cryptocurrency issuers have opted for the SEC’s comprehensive registration, or “Regulation A,” since the advent of these digital assets. This low participation rate illustrates how existing regulatory structures—such as the extensive Form S-1—can be cumbersome and ineffective. He proposed creating clearer pathways, such as new exemptions for token offerings, allowing for streamlined disclosure requirements without excessive detail.

Revising Custodial Regulations

Recent reports indicate that the SEC has eliminated Staff Accounting Bulletin No. 121, which previously complicated the management of digital assets by firms. Atkins labeled this action as just the beginning, calling for a reconsideration of who can serve as a “qualified custodian.” He noted that several funds are leveraging self-custody tools that provide robust safeguards. Currently, only two “special purpose broker-dealers” operate, and he suggested that expanding their rules could lead to a more practical framework.

Innovations in Trading Platforms

Atkins articulated a vision where brokers can develop “super apps” that allow customers to engage with stocks, cryptocurrencies, and other asset classes seamlessly. He remarked that nothing in current legislation prohibits brokers from listing non-security tokens alongside shares. To facilitate this, he is instructing staff to revise the regulations surrounding alternative trading systems and to consider the feasibility of national exchanges accommodating token listings.

Coordinated Efforts by the Task Force

Additionally, Atkins introduced the newly established Crypto Task Force, headed by two fellow commissioners. This initiative aims to dismantle long-standing agency barriers by merging policy, legal, and technical expertise. Such coordination is projected to expedite the delivery of clear directives to investors and businesses. Notably, this initiative aligns with a call from former US President Donald Trump to establish the US as the global “crypto capital.

The regulator outlined three pivotal areas—issuance, custody, and trading—each of which necessitates customized regulations. He stressed that updated standards are crucial for safeguarding investors by clearly defining what constitutes a security, outlining custodial obligations, and detailing trading venues. Furthermore, he assured stakeholders that enforcement will prioritize battling fraud and manipulation, rather than shaping policy through enforcement actions.

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