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The SEC chairman announces a new direction for encryption regulation, promoting the United States to become a global leader.
US SEC Chairman Discusses New Directions in Encryption Asset Regulation
Recently, the chairman of the U.S. Securities and Exchange Commission (SEC) delivered a keynote speech at a tokenization roundtable, outlining new ideas for the regulation of encryption assets.
The chairman pointed out that as securities migrate from traditional databases to blockchain-based distributed ledger systems, this shift could fundamentally reshape the securities market. He compared this transformation to the transition of audio recordings from vinyl records to digital files, believing it will bring about entirely new ways of issuing, trading, holding, and using securities.
In order for the United States to become a global leader in the encryption field, the SEC must keep pace with the times and consider adjusting existing rules to accommodate on-chain assets. The chairman emphasized that clear rules are crucial for protecting investors and help identify illegal activities.
He stated that the SEC will no longer rely on temporary enforcement actions to formulate policies, but will instead use existing powers to create feasible standards for market participants. The enforcement approach will return to regulating violations, particularly in terms of fraud and manipulation.
The chairman emphasized the policy direction in three key areas:
Issuance: Establish clear and reasonable guidelines to simplify the issuance process of encryption assets. Consider adjusting the registration forms to better suit the characteristics of encryption assets.
Custody: Give registrants more autonomy to decide how to custody encryption assets. Consider updating custody rules to allow self-custody in certain cases.
Trading: Allow registrants to trade a wider variety of products on the platform, responding to market demand. Explore the design of a modern ATS regulatory system to better accommodate encryption assets.
The chairman stated that he will coordinate with the government and Congress to make the United States the best place for global encryption asset market participation. He also mentioned that he might consider providing conditional exemptions for innovative products and services to promote the development of blockchain technology.
Overall, this speech conveys a significant shift in the SEC's regulatory attitude toward encryption assets, demonstrating a more open and supportive stance toward innovation.