SEC chair Atkins signals new rules for onchain markets, AI-driven finance

CoinDesk8h agoUpdated 8h ago
SEC chair Atkins signals new rules for onchain markets, AI-driven finance
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SEC Chair Paul Atkins signaled the agency is pursuing formal rulemaking for onchain trading systems, blockchain settlement infrastructure, and AI-driven financial applications. Current securities regulations don't fit blockchain protocols combining multiple market functions into single software. Atkins advocates clarifying regulatory treatment of hybrid traditional-decentralized finance models through rulemaking rather than enforcement, marking a shift from predecessor Gary Gensler's enforcement-heavy approach under Trump's administration.

Key takeaways

  • 1SEC Chair Atkins signals formal rulemaking for onchain trading systems, blockchain settlement infrastructure, and AI-driven financial applications.
  • 2Existing securities regulations don't fit blockchain protocols combining multiple market functions like trading, collateral management, and settlement into single software.
  • 3Atkins shifts from enforcement-heavy approach to clarifying regulatory treatment of hybrid traditional-decentralized finance models through rulemaking and exemptive authorities.

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Why it matters

India's crypto investors face regulatory uncertainty; clearer SEC rules on onchain markets and AI finance could influence global regulatory frameworks and affect Indian exchanges and DeFi platforms operating internationally. This signals a more accommodative stance toward crypto infrastructure, potentially reducing legal risks for digital asset firms serving Indian retail traders.

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