U.S. Securities and Exchange Commission Chair Paul Atkins announced that the agency is actively considering rulemaking to adapt securities regulations to the realities of blockchain-based and AI-powered financial markets. Speaking at the AI+ Expo in Washington, Atkins underscored that existing rules—designed for traditional intermediaries like brokers, exchanges, and clearinghouses—do not fit environments where a single software protocol can simultaneously execute trades, manage collateral, route liquidity, and settle transactions.
The chair emphasized the hybrid nature of current on-chain structures, which blend elements of traditional and decentralized finance. “We should clarify how the Commission views the spectrum of models that may implicate our statutes through notice and comment rulemaking, using our exemptive authorities where necessary and prudent,” Atkins said. This marks a sharp pivot from the enforcement-heavy tactics of former Chair Gary Gensler, who had targeted centralized exchanges through lawsuits. Under the Trump administration, the SEC has already issued staff guidance, no-action reliefs, and public statements to reduce legal uncertainty for digital asset firms.
Atkins also highlighted the growing role of AI agents that will make trading decisions at machine speed, moving value instantly over blockchain rails. He stressed that the SEC should avoid locking emerging technologies into outdated rules, framing the potential changes as part of a broader shift toward an automated financial infrastructure. “Our job is to set the rules of play and referee the game, not to pick the winning team,” he said. Additionally, Atkins reiterated support for the CLARITY Act, a legislative effort to create a shared regulatory framework between the SEC and the Commodity Futures Trading Commission.
The SEC's review could lead to new qualification requirements for crypto exchanges, brokers, dealers, and clearing agencies, addressing long-standing ambiguity for DeFi platforms and other blockchain services that struggle to determine their regulatory status. The outcome is expected to shape U.S. crypto policy for years, encouraging innovation while maintaining investor protection.
