SEC Chair Discusses Encryption Asset Regulatory Framework

At the recent tokenization roundtable, the SEC chairman delivered an important speech on the regulation framework for encryption assets. He pointed out that securities are shifting from traditional databases to blockchain-based distributed ledger systems, a transformation that could fundamentally reshape the securities market.

The chairman emphasized that 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. He stated that the SEC will no longer rely on temporary enforcement actions, but will use its existing powers to establish practical standards for market participants.

The speech focused on three policy areas: issuance, custody, and trading. In terms of issuance, the chairman called for clear and reasonable guidelines for encryption assets and consideration of new registration exemptions and safe harbor provisions. Regarding custody, he supported giving registrants more autonomy and suggested updating relevant rules to accommodate the characteristics of the encryption asset market. On trading, the chairman expressed support for allowing registered platforms to trade a wider variety of products and exploring the design of a modernized ATS regulatory system.

The chairman emphasized that the SEC will be committed to developing a comprehensive encryption asset regulatory framework to ensure that the United States becomes the best global market participant for encryption assets. He expressed his willingness to coordinate with government and congressional colleagues to achieve this goal.

This speech demonstrated that the SEC is actively addressing the regulatory challenges posed by encryption assets, aiming to create a favorable environment for industry development while also ensuring investor protection. As the regulatory framework becomes clearer, the U.S. encryption asset market is expected to welcome new development opportunities.