The Blockchain Association wants the SEC to stop using equity market rules for crypto regulation.
Crypto firms say blockchain needs flexible rules that match its real time and transparent structure.
The SEC is reviewing its crypto approach as leaders meet with industry and close older investigations.
The Blockchain Association has asked the U.S. Securities and Exchange Commission to stop applying equity rules to crypto markets. The group submitted its formal response on May 2, 2025, after Commissioner Hester Peirce called for input on crypto market practices.
https://twitter.com/MTCoppel/status/1918364737966059651
The association argues that traditional equity structures do not suit blockchain-based systems. It emphasizes that the decentralized nature of blockchain calls for updated and specific regulation.
Crypto Industry Leaders Back the Request
The Blockchain Association represents firms like Coinbase, Ripple, and Uniswap Labs. It claims the existing SEC framework ignores blockchain’s core features. These include real-time settlement, transparent data, and disintermediation of middlemen.
The group wants the SEC to stop imposing strict equity-style rules. Instead, it calls for greater transparency and flexible standards. They say current enforcement limits how blockchain technology can evolve and expand.
Focus on Trading, Settlement, and Custody
The association’s letter focuses on trading, clearing, settlement, and custody. It urges the SEC to avoid restricting how blockchain is used or who can use it.
They suggest modernizing “best execution” rules by stressing diligence and openness. They argue that forced protections used in equities do not fit digital assets.
Support for Real-Time Data Monitoring
The group says blockchain’s open data allows real-time monitoring without gathering personal user data. It urges the SEC to use public exchange APIs rather than collecting sensitive information.
They cite privacy concerns linked to excessive data collection. The group references a 2024 report from policy head Marisa Tashman Coppel that warned of surveillance risks.
Criticism of Previous SEC Leadership
The letter criticizes past SEC policies under former Chair Gary Gensler. It claims the agency forced crypto into outdated financial models. These actions ignored the technology’s unique features, the group argues.
The association now supports current Chair Paul Atkins. It notes Atkins’ willingness to engage with lawmakers and the crypto community. Since taking over, he has launched a crypto task force and public roundtables.
SEC Shows Signs of Change
The SEC recently closed its case into PayPal’s PYUSD stablecoin without penalties. The agency called the talks with PayPal productive. Ripple co-founder Chris Larsen met with Atkins, though details remain unclear. Observers believe the XRP case may have been discussed. At the same time, the SEC and Binance requested a 60-day delay in their case. This shows both sides are exploring further talks.
