SEC Chair Outlines Crypto Regulation Direction at ETHDenver

The U.S. Securities and Exchange Commission (SEC) has released a speech by Chair Paul Atkins at the ETHDenver conference, detailing the agency's approach to cryptocurrency regulation. According to ChainCatcher, the SEC plans to clarify the framework for determining when crypto assets constitute investment contracts, including their formation and termination mechanisms. The SEC is considering the introduction of innovation exemptions, which would allow limited pilot trading of certain tokenized securities under restricted conditions. This includes trading on new platforms like automated market makers, aimed at gathering experience for a long-term regulatory framework. The agency also intends to advance rulemaking on various topics, such as the financing paths for crypto assets, the modernization of broker-dealer custody and transfer agent rules for non-securities crypto assets, including payment stablecoins. Additionally, the SEC will continue to provide clarity through no-action letters and exemption orders for scenarios like wallets and user interfaces that do not require registration. Paul Atkins emphasized that regulators should not react to short-term price fluctuations. The SEC's role is to ensure adequate information disclosure and clear rules, allowing market participants to make decisions in a transparent environment, rather than protecting prices.