U.S. Securities and Exchange Commission (SEC) New Chairman Paul Atkins Emphasizes Regulatory Approach at Digital Assets Roundtable Forum
On May 12, new SEC Chairman ### Paul Atkins highlighted that the SEC will no longer rely solely on enforcement to manage the cryptocurrency market, and that clear legislation and rule-making will be established to set the tone for the crypto industry. Atkins specifically pointed out that major asset management firms, including BlackRock and Franklin Templeton, are actively positioning themselves in the securities tokenization market, indicating that existing regulations must be adjusted in sync with market innovations.
Web3 Introduces New Market Dynamics, Existing Regulations Must Keep Pace
Atkins opened by stating that blockchain technology can create a multitude of novel market activities that current regulations cannot envision, leading to many innovative use cases in the securities industry.
He emphasized, “It is time for the SEC’s regulatory framework to keep pace with market innovation.” Atkins also announced that the SEC will fully transition to institutional regulation, utilizing:
- Formal legislation
- Interpretive letters
- Exemptions
to establish an “appropriate regulatory framework,” moving away from the previous approach of reactive enforcement.
SEC ### Atkins also tweeted (X) this morning on May 13, indicating that clear rules for the crypto market will be formulated.
Three Key Regulatory Focus Areas Revealed: Issuance, Custody, and Trading Rules
Atkins noted that the new regulatory framework will establish clear rules concerning three main areas:
- Issuance rules: What constitutes a security among cryptocurrencies? The standards will be clarified.
- Custody rules: How to securely hold cryptocurrencies and what constitutes legal custody will be defined with comprehensive rules.
- Trading rules: Regardless of whether they are securities or non-securities, platforms that sell these products will require clear operating procedures.
He also added, “In the future, we hope to enable broker-dealers to offer a more diverse range of product combinations, including hybrid securities and non-securities tokens.”
The image shows the SEC’s digital asset forum meeting on May 12.
Can Securities also Undergo Digital Transformation? Atkins Uses the Analogy of “Vinyl Records to Streaming”
Atkins specifically mentioned securities tokenization. He stated:
“It’s like the evolution from vinyl records to streaming music; each technological advancement makes content easier to share and transmit, while also creating new business models.” He believes the financial market will follow a similar path.
Asset Management Giants Entering the Market, Securities Tokenization Scale Reaches $22.6 Billion
Atkins mentioned that currently, major firms include:
- BlackRock: BUIDL tokenized U.S. Treasury bond fund has been launched
- Franklin Templeton: BENJI tokenized U.S. Treasury bond fund has been launched
- Online broker Robinhood: Considering enabling European retail investors to buy and sell U.S. securities via blockchain
According to on-chain data platform RWA.xyz, there are currently $22.6 billion of real assets on-chain, growing 7.6% in just the last 30 days.
The current market value of RWA has reached $22.6 billion.
Why is Everyone Eager to Engage in Tokenization? Due to Convenience and Fast Settlement
Atkins pointed out that tokenized securities attract the market because of:
- Faster settlement speeds
- Independence from traditional intermediaries
- Increased liquidity for assets that were previously difficult to trade
This is not only attractive to institutional investors but also beneficial for general investment platforms, broker-dealers, and even retail investors globally.
Will the SEC Truly Change? Further Observation Required
In summary, this public discussion represents the SEC’s proactive goodwill, demonstrating a willingness to listen to industry voices and acknowledging that the previously enforcement-first strategy is no longer suitable for this rapidly evolving industry. However, the industry will closely monitor whether the SEC will indeed introduce clear and implementable rules, and future developments will be worth tracking.
(BlackRock Advances into Solana! BUIDL’s market value has reached $1.7 billion, firmly holding the title of “Tokenized Government Debt.”)
Risk Warning
Investment in cryptocurrencies carries a high level of risk, and their prices may be highly volatile, potentially resulting in the loss of your entire principal. Please assess the risks carefully.