TechFlow news: On February 19, the U.S. Securities and Exchange Commission (SEC) website published a speech delivered by SEC Chair Paul Atkins at ETHDenver, outlining the agency’s regulatory approach to crypto assets. Key points include:
1. Clarifying the “investment contract” framework: The Commission will study and issue guidance clarifying under what circumstances crypto assets constitute investment contracts, as well as how such contracts are formed and terminated.
2. Innovation exemptions: The SEC is considering establishing innovation exemptions that would permit pilot trading of certain tokenized securities under restricted conditions—including limited trading on novel platforms such as automated market makers—to gather experience for developing long-term regulatory frameworks.
3. Advancing rules and guidance: The SEC plans to initiate or advance rulemaking on topics including financing pathways for crypto assets, broker-dealer custody of non-security crypto assets (including payment stablecoins), and modernization of transfer agent rules. It will also continue issuing no-action letters and exemption orders to provide clarity for scenarios—such as wallets and user interfaces—that do not require registration.
4. Regulatory philosophy: Paul Atkins emphasized that regulators should not react to short-term price volatility. The SEC’s mandate is to ensure adequate disclosure and clear rules so that market participants can make decisions in a transparent environment—not to “prop up prices.”
