Chairman Paul S. Atkins delivered remarks at the Crypto Task Force Roundtable, emphasizing the urgent need for modernizing regulations to support blockchain-based ("on-chain") securities. He compared the shift from traditional systems to blockchain with the digital transformation in the music industry, highlighting its potential to reshape how securities are issued, traded, and owned.
Key Points:
1. Tokenization: A Paradigm Shift
Just as digital audio revolutionized music, tokenized securities on blockchain could bring innovation to financial markets.
Benefits include transparent dividend distribution via smart contracts and improved liquidity for traditionally illiquid assets.
2. Regulatory Reform Needed
Current SEC rules are outdated and may hinder blockchain adoption.
Atkins commits to building a regulatory framework that encourages innovation while protecting investors
3. Clear Crypto Policy Priorities:
Issuance: The SEC will work to provide clearer rules and updated disclosure requirements. Traditional forms like Form S-1 are ill-suited for crypto offerings
Custody: Recent changes (e.g., rescinding Staff Accounting Bulletin 121) are a step forward. The SEC aims to allow more flexibility in custodial services, including self-custody in some cases.
Trading: Atkins supports broader product offerings and revisiting the restrictive “special purpose broker-dealer” framework to encourage competition and market growth.
4. Coordinated and Transparent Policymaking
The newly formed Crypto Task Force, led by Commissioners Uyeda and Peirce, seeks to eliminate the fragmented policymaking of the past.
Future rules will come through formal processes, not ad hoc enforcement.
Conclusion:
Atkins envisions a future where the U.S. leads in crypto innovation by fostering a regulatory environment that is adaptive, rational, and pro-growth. The Commission’s approach will prioritize clarity, investor protection, and active engagement with the crypto industry.
