SEC Considers New Rules for On-Chain Markets, Focusing on Software Application Regulatory Framework

Odaily Planet Daily News: SEC Chairman Paul Atkins stated that the regulatory agency is considering formulating new rules for on-chain financial markets and related software applications.

Atkins pointed out that current software protocols like DeFi are difficult to classify within the traditional regulatory framework as exchanges, broker-dealers, or clearing agencies. A single protocol often simultaneously performs multiple functions such as trade execution, collateral management, liquidity routing, and settlement.

His remarks are seen as a sign of the SEC adopting a more open attitude towards the crypto industry, which is friendlier compared to his predecessor, Gary Gensler. At the same time, the SEC is also exploring innovative exemption mechanisms for tokenized securities and advancing the clarification of the digital asset classification system.