- SEC may revise exchange and broker rules as blockchain systems combine trading, liquidity, and settlement functions.
- Agency studies whether near-instant blockchain settlement fits existing clearing agency regulations and definitions.
- SEC Chair Paul Atkins urges CLARITY Act progress to provide long-term legal certainty for crypto markets.
SEC Chair Paul Atkins said the agency is reviewing several rule changes tied to blockchain-based financial markets and crypto infrastructure. Speaking at an event Thursday, Atkins outlined possible rulemaking around onchain exchanges, brokers, clearing agencies, and crypto vaults. He also said the SEC may revisit how securities laws apply to automated blockchain systems and near-instant settlement models.
SEC Reviews Rules for Onchain Trading
Atkins said existing securities rules may not fully match how blockchain protocols operate today. According to his remarks, some onchain systems now handle trading, collateral management, liquidity routing, and settlement simultaneously.
Because of that structure, the SEC is considering future rulemaking around the definition of an exchange in crypto markets. Atkins said the agency may also open notice-and-comment procedures covering onchain trading systems.
Meanwhile, the SEC is reviewing how broker and dealer rules apply to software interfaces and blockchain-based activity. Atkins noted that exemptive rulemaking could become part of that process.
He added that regulators must provide market participants with clearer guidance as onchain financial systems continue expanding.
Agency Studies Blockchain Settlement Models
Beyond trading rules, Atkins also addressed clearing and settlement activity on blockchain networks. He questioned whether the traditional clearing agency model still fits markets using near-instant settlement technology.
According to Atkins, algorithmic systems now manage counterparty risk directly through automated blockchain processes. That shift has prompted the SEC to review which onchain activities should fall outside existing clearing agency definitions.
At the same time, Atkins discussed crypto vaults that allow users to generate yield through blockchain-based strategies. The SEC is examining how those products fit under the Securities Act and Investment Advisers Act.
He said the agency wants greater clarity around how hybrid financial models operate between decentralized and traditional finance systems.
Atkins Calls for Coordination and CLARITY Act
Atkins also stressed the importance of coordination between regulators as crypto markets evolve. He said overlapping jurisdictions could create regulatory gaps without clear cooperation.
Meanwhile, Atkins urged Congress to advance the CLARITY Act. He stated that statutory language would provide stronger long-term certainty than regulatory guidance alone.
In addition, Atkins addressed artificial intelligence in finance. He said firms remain responsible for the outcomes produced by AI tools used in investment and market operations.
