SEC Plans More Crypto Rules to Keep Markets in the U.S.

SEC Chair Paul Atkins announced that the agency will introduce more crypto regulations to ensure digital asset markets remain within the U.S. This follows the failure of the Senate to pass the CLARITY Act last month, prompting the SEC to take on the regulatory task independently.

The new regulatory framework focuses on modernizing custody rules for crypto assets, which were last updated in 1940 and are outdated for today's digital landscape. Atkins emphasized that this initiative is part of a broader approach to crypto regulation, including Regulation Crypto Assets and the Innovation Exemption, which allows national stocks to trade on decentralized exchanges for five years.

Atkins argued that these efforts are crucial to prevent the U.S. from falling behind in financial innovation, stating that blockchain technology has the potential to modernize the financial system. However, critics like former SEC Chief John Reed Stark contend that the agency is overstepping its authority and encroaching on Congress's jurisdiction.

Despite the criticism, Atkins remains committed to expanding pro-crypto rules, vowing to continue working with President Trump to establish the U.S. as the global leader in crypto markets.