Securities and Exchange Commission (Finance Committee) Chairman Paul S. Atkins He said on Friday (May 8) that he believes the SEC should provide greater clarity around on-chain financial markets and that he continues to encourage Congress to pass the Clarity Act to future-proof these efforts.
In a letter Delivered in Special competitive studies project‘s Artificial Intelligence+ ExhibitionToday’s software applications don’t always regulate themselves in ways that adhere to the regulated market functions defined in the SEC’s current framework, Atkins said.
For this reason, Atkins said, the SEC must provide greater clarity by providing market participants with a clear sense of how cross-chain trading systems operate within the regulatory perimeter; Consider the application of broker-dealer definitions and the regulatory framework associated with these activities; Confirming general purpose activities that fall outside the scope of the definition of “clearing agency” when it comes to cross-chain clearing and settlement; Providing clarity surrounding cryptocurrency vaults.
“As the Commission considers these policy initiatives, we must remember that today’s on-chain market structures are often hybrid in nature, combining elements of what is referred to as ‘traditional’ and ‘decentralized’ finance,” Atkins said. “We must make clear how the Commission views the range of models that may implicate our laws through notice-and-comment rulemaking, using our exemptive powers where necessary and prudent, all with the full participation of innovators, investors and the public alike.”
Atkins added that the SEC must continue to coordinate with other regulatory agencies to avoid a patchwork of regulation.
He also repeated the call he has made in the past for Congress to pass the Clarity Act.
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“Because, while I intend to future-proof our efforts with notice and comment rulemaking, there is no stronger way to future-proof than to enshrine common-sense legal language in law,” Atkins said.
The law of clarity, which is Crypto invoice That stalled in Congress, regained some momentum on May 1 when lawmakers reached a compromise on stablecoin returns and rewards.
The lawmakers’ settlement would amend the legislation to restrict cryptocurrency companies from paying users interest or yield on passive stablecoin deposits, but would allow them to offer rewards tied to activity such as trading, transactions or staking.
In another recent move, the Securities and Exchange Commission and Commodity Futures Trading Commission (CFTC) Each issued guidance that they said provides greater clarity about their rules Crypto assets.
