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- SEC Chair Paul Atkins says new rules for on-chain crypto markets are under consideration.
- The agency is reviewing exchange, broker-dealer, and clearing regulations tied to DeFi.
- Momentum is building around the CLARITY Act as the crypto industry seeks legal certainty.
The U.S. Securities and Exchange Commission is preparing for a new phase of crypto regulation, with SEC Chair Paul Atkins outlining potential rule changes aimed at on-chain financial markets and decentralized finance platforms.
Speaking at an event in Washington, Atkins said the agency is evaluating several areas where clearer rules may be needed as blockchain-based trading systems continue to grow. His remarks arrive at a critical moment for the crypto industry, which is also watching developments around the proposed CLARITY Act in Congress.
SEC Eyes Framework for On-Chain Trading Systems
Atkins said the Commission may explore what he described as a limited “innovation pathway” for on-chain trading systems. The goal would be to help emerging crypto market structures operate within a clearer legal framework while regulators assess how existing securities laws apply.
One major issue under review is the definition of an “exchange” in relation to decentralized and blockchain-powered systems. The SEC chair suggested the current framework may not fully reflect how modern on-chain platforms function.
He also indicated that the agency is examining how broker-dealer rules apply to decentralized finance activities and software interfaces used in crypto transactions. The discussion follows a recent SEC staff statement that outlined how some DeFi-related interfaces could potentially operate without traditional broker-dealer registration requirements.
Crypto Vaults and Clearing Rules Under Review
Another focus area involves firms handling on-chain clearing and settlement services. Atkins said the SEC could pursue rulemaking to clarify which activities fall under the “clearing agency” definition and which may remain outside regulatory scope.
The SEC is also reviewing how federal securities laws apply to crypto vaults and yield-generating products. These services allow users to place digital assets into blockchain-based strategies designed to generate passive income.
According to Atkins, many modern crypto platforms now combine elements of traditional finance with decentralized infrastructure, creating hybrid market structures that regulators cannot ignore.
CLARITY Act Gains Attention
Atkins used the opportunity to encourage lawmakers to move forward with the CLARITY Act, a proposed crypto bill designed to establish a clearer legal framework for digital assets in the United States.
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He noted that while the SEC can pursue regulatory clarity through rulemaking and public comment processes, legislation from Congress would provide stronger long-term certainty for the industry.
The comments suggest the SEC may be shifting toward a more structured approach to crypto oversight rather than relying primarily on enforcement actions. For crypto companies and investors, the coming months could shape how on-chain finance develops in the U.S. market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
