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

Odaily Planet Daily News: U.S. SEC Chairman Paul Atkins said that regulators are considering formulating new rules for on-chain financial markets and related software applications.

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

His remarks are seen as an indication that the SEC is 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 promoting the clarification of digital asset classification systems.