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SEC chairman: crypto framework a top priority; task force work and roundtables ongoing
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Summary
SEC Chairman Paul Atkins told a House appropriations subcommittee that developing a clear regulatory framework for crypto markets is a top priority and that the agency will pursue policy through notice-and-comment rulemaking and roundtables.
At a House appropriations subcommittee hearing, Securities and Exchange Commission Chairman Paul Atkins said establishing clear rules for digital assets is a top priority and that the agency will pursue a framework through formal rulemaking.
"A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets," Atkins told the panel. He said regulators must provide clarity about which digital assets are securities and which are not to avoid chilling innovation and to help lawyers and market participants form reliable opinions.
Atkins said the SEC will use existing securities statutes, such as the Securities Act and the Exchange Act, and will rely on concept releases, roundtables and public comment periods as it develops policy. He singled out the crypto task force created in January and led by Commissioner Hester Peirce as a useful forum for gathering input. "I think she's, you know, super qualified, to do that. And so she's formed a team, and they have gone after this to, you know, explore and and, prepare for, you know, potential rulemaking in this area," Atkins said.
The chairman told members he did not plan to create a separate, permanent SEC division devoted solely to digital assets right now. Instead he prefers to disperse expertise across the agency's existing divisions and said he will consider targeted reorganization as needed. He also said the SEC will coordinate with the Commodity Futures Trading Commission on areas where jurisdiction overlaps.
Atkins and lawmakers discussed the legal tests that guide whether an instrument is a security, including the Supreme Court's Howey decision, and how that test applies to novel instruments. He noted SEC corporation finance staff guidance that some "meme coins" may be treated as collectibles rather than securities when they lack attributes the staff associates with investment contracts.
The crypto task force has held several roundtables and will continue outreach before any proposed rulemaking, Atkins said. He declined to provide a timetable for final regulations but said the agency expects to use public comment and additional coordination with other agencies to craft any new rules.
