SEC Chair Shares Crypto Assets Regulatory Insights

At the tokenization roundtable, an important figure shared his views on Crypto Assets regulation. He pointed out that securities are migrating from traditional databases to blockchain systems, a shift that could fundamentally reshape the securities market.

The spokesperson likened this change to the evolution of audio recording from vinyl records to digital files. Digitization has brought tremendous innovation to the music industry, making audio easier to transmit, modify, and store. Similarly, blockchain technology may also bring entirely new use cases and market activities for securities.

To make the United States a global Crypto Assets hub, regulators need to keep pace with innovation and consider adjusting existing rules to accommodate on-chain assets. The spokesperson emphasized that clear rules are crucial for protecting investors and are particularly helpful in identifying illegal activities.

He stated that future policy-making will no longer be based on temporary enforcement, but will instead utilize existing powers to establish feasible standards for market participants. This requires coordinated cooperation among multiple departments within the regulatory agency.

The spokesperson focused on three key areas: issuance, custody, and trading. In terms of issuance, he called for clear and reasonable guidelines for Crypto Assets and consideration of adjustments to registration requirements. Regarding custody, he supported granting registrants more autonomy and suggested updating relevant rules. In trading, he supported allowing platforms to offer a wider variety of products and exploring how to facilitate the listing and trading of Crypto Assets on exchanges.

Overall, the spokesperson stated that regulators should actively adapt to the development of the encryption industry, create a favorable environment for market participants, while ensuring investor protection. He hopes that through these efforts, the United States will become the best place in the world to participate in the Crypto Assets market.