#CryptoRoundTableRemarks The US Securities and Exchange Commission (SEC) has been hosting Crypto Task Force Roundtables to discuss regulatory frameworks for crypto assets. Key remarks from these discussions include ¹ ² ³:

- *Tokenization*: The SEC Chair likened the shift to on-chain securities to the transition from analog vinyl records to digital audio files, highlighting potential for innovation and efficiency in the securities market.

- *Regulatory Framework*: The SEC aims to establish clear guidelines for crypto asset markets, focusing on issuance, custody, and trading. The Chair emphasized the need for a rational regulatory framework that accommodates on-chain securities and other crypto assets.

- *Custody*: Discussions centered on updating custody rules to accommodate crypto assets and blockchain technology. The SEC Chair supports providing registrants with greater optionality in determining how to custody crypto assets.

- *Trading*: The SEC is exploring ways to modernize the Alternative Trading System (ATS) regulatory regime to better accommodate crypto assets. There's also discussion on enabling the listing and trading of crypto assets on national securities exchanges.

*Key Challenges:*

- *Regulatory Uncertainty*: Market participants face uncertainty due to the lack of clear guidelines, leading to stifled innovation.

- *Investor Protection*: The SEC emphasizes the need for investor protection against fraud and manipulation.

- *Compliance*: Existing rules and regulations may not be compatible with blockchain technology.

*Potential Solutions:*

- *Exemptive Relief*: The SEC is considering conditional exemptive relief for registrants and non-registrants to allow for greater innovation with blockchain technology.

- *Updated Regulations*: The SEC aims to update regulations to accommodate crypto assets and blockchain technology, such as revising the "special purpose broker-dealer" framework.