SEC adopts a more open attitude towards adjusting cryptocurrency trading rules, with Peirce voicing support for regulatory innovation

【Crypto World】SEC Commissioner Hester Peirce issued an important statement on December 17, announcing the launch of the latest FAQ in collaboration with the Trading and Markets Division, widely soliciting market opinions on the applicable rules for national securities exchanges (NSE) and alternative trading systems (ATS) in cryptocurrency asset trading.

The focus of this statement is very clear: how to handle the specific trading and clearing arrangements for crypto asset securities and “security—non-security crypto asset” trading pairs. Peirce admitted that SEC staff are ready to work closely with market participants to promote compliant trading pairs on legitimate platforms. She pointed out that the market is in urgent need of a clearer market structure rule system that protects investors, maintains market order, and does not impose excessive regulatory burdens on innovation. Especially, the two old rules introduced in 1998—Regulation ATS and Regulation NMS—are somewhat out of sync when it comes to crypto assets and blockchain technology.

The issues involved in this solicitation are quite specific. First, how to lower platform access barriers and encourage innovation; second, whether the current Reg NMS and Reg ATS impose disproportionate compliance costs on crypto trading. There is also a discussion on whether to create a separate Form ATS for crypto ATS or to adjust the existing disclosure system. Should crypto ATS information disclosure remain non-public, or should SEC review and public mechanisms be introduced? Given the traceability of blockchain data, is the quarterly reporting requirement for Form ATS-R still necessary? Is there a clear compliance method for converting non-USD assets into USD? How to handle requirements such as trade information confidentiality, system risk control, and system compliance to ensure security without hindering individual developers or the use of automated trading tools.

Peirce emphasized that these issues will directly impact the SEC crypto working group’s subsequent policy development. The regulatory agency also sincerely invites broader suggestions, aiming to improve the overall regulatory framework for NSE and ATS. The market generally interprets this statement as a relatively open signal from SEC internally regarding reforms to the crypto asset trading market structure, conveying a willingness to find a balance between innovation and regulation.