SEC chair says most tokens are not securities, backs ‘super-app’ platforms
News Summary
US Securities and Exchange Commission (SEC) Chair Paul Atkins stated that “most crypto tokens are not securities” and outlined a comprehensive plan to integrate crypto activities like trading, lending, and staking under a unified regulatory framework. He emphasized that “policy will no longer be set by ad hoc enforcement actions,” aiming to provide clear, predictable rules to foster innovation in the United States. Under the “Project Crypto” initiative, the SEC plans to modernize its securities regulations for blockchain-based financial markets. Atkins noted that the President’s Working Group on Digital Asset Markets has already provided a “bold blueprint” for this mission. The SEC’s updated strategy includes allowing platforms to operate as “super-apps,” facilitating digital asset trading, lending, and staking under one regulatory umbrella, with flexible custody solutions. Atkins stressed the need for the “minimum effective dose of regulation” to avoid overburdening entrepreneurs. He also praised the EU’s Markets in Crypto-Assets (MiCA) framework and called for international cooperation. In contrast, the European Banking Authority (EBA) last month finalized rules requiring EU banks to hold a 1,250% risk weight against unbacked cryptocurrencies like Bitcoin and Ether, differing from the more permissive stances of the US FDIC and Switzerland.
Background
Following the re-election of incumbent US President Donald J. Trump in 2024, his administration has demonstrated a distinctly different stance on cryptocurrency regulation compared to the previous administration. Prior to this, the US Securities and Exchange Commission (SEC), under its former chair, had imposed strict regulations on the crypto industry through a series of enforcement actions, leading to uncertainty for many crypto firms and raising concerns about the innovation environment in the US. Globally, there are significant divergences in regulatory approaches to crypto assets across different countries and regions. The European Union has explored a comprehensive digital asset regulatory system through its MiCA framework, while countries like Switzerland have advanced with Distributed Ledger Technology (DLT) laws, supporting crypto custody and stablecoin guarantees. This international regulatory divergence provides a backdrop for the new US administration's reforms and lessons learned.
In-Depth AI Insights
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