SEC Chairman Discusses Crypto Assets Regulatory Framework

At a recent tokenization roundtable meeting, the SEC chairman delivered an important speech on the regulatory framework for Crypto Assets. He pointed out that securities are migrating from traditional databases to blockchain-based distributed ledger systems, a shift that could reshape the entire securities market.

The chairman likened this transformation to the shift from analog to digital audio. Just as digital audio has profoundly changed the music industry, on-chain securities also have the potential to bring revolutionary changes to the securities market. For example, smart contracts can enable automatic and transparent dividend distribution, while tokenization can enhance asset liquidity.

In order to maintain the United States' leading position in the Crypto Assets field, the SEC needs to 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, particularly in identifying illegal scams.

The SEC is working on establishing practical standards rather than relying on ad-hoc enforcement actions. To this end, the SEC has formed a cross-departmental Crypto Assets special working group to provide the regulatory clarity that the industry has long needed.

The chairman focuses on three areas: issuance, custody, and trading. In terms of issuance, the SEC will establish clear and reasonable guidelines for Crypto Assets and consider adjusting existing registration forms. Regarding custody, the SEC will grant registrants more autonomy and clarify the definition of "qualified custodians." In trading, the SEC will allow platforms to offer a wider variety of products and explore modernizing the ATS regulatory framework.

The chairman stated that the SEC will be committed to establishing a comprehensive Crypto Assets regulatory framework, while also considering conditional exemptions for innovative projects. He hopes to coordinate with the government and Congress to make the United States the best participating place for Crypto Assets in the world.