The U.S. Securities and Exchange Commission (SEC) is set to introduce new guidelines for cryptocurrency tokens that are classified as securities. SEC Chair Paul Atkins revealed this plan during a public meeting of the SEC’s crypto task force on Monday. Atkins emphasized that developing a rational regulatory framework for crypto asset markets is a key priority of his chairmanship. This framework aims to establish clear rules for the issuance, custody, and trading of crypto assets while continuing to deter malicious actors from violating the law.
The crypto industry has been at odds with regulators over how federal securities laws apply to digital assets. Many argue that most crypto tokens are more akin to commodities rather than securities. Tokens classified as securities would require firms to register with the SEC and provide certain disclosures to investors. The SEC’s new leadership has agreed to withdraw or pause several cases against crypto companies that were sued under former President Joe Biden’s SEC for allegedly flouting its rules.
Atkins, who was sworn in last month, has stated that having a firm foundation for digital assets and keeping politics out of securities laws will be his top priority as SEC chair. Republican SEC Commissioner Hester Peirce is leading the SEC’s crypto task force, which is tasked with developing rules and guidance for the sector. The task force is considering whether additional exemptions are necessary for distributions of crypto tokens that are securities. They are also exploring the possibility of tweaking rules to allow registered broker-dealers with an alternative trading system (ATS) to facilitate trading in non-securities, such as bitcoin or ether, the two largest cryptocurrencies.
The development comes as the crypto industry awaits clearer regulations on digital assets. President Donald Trump, who campaigned on promises to be a “crypto president,” has pledged to reverse the industry crackdown under former President Joe Biden’s SEC. The new guidelines are expected to provide more clarity on the regulatory framework for crypto assets, which has been a subject of contention between the industry and regulators.
