SEC chair signals major crypto rule overhaul for onchain markets

SEC Chair Paul Atkins calls for new rules to update securities laws for onchain trading, crypto vaults, and DeFi, signaling a shift from enforcement to tailored regulation.

SEC Chair Paul Atkins has indicated a significant change in U.S. crypto regulation. He revealed that the agency is considering new rulemaking for onchain trading systems, crypto vaults, and blockchain settlement infrastructure. Atkins stressed that current securities laws, built for traditional financial intermediaries, do not sufficiently address the complexities of modern blockchain-based systems, which often merge multiple market functions within a single protocol. He advocated for a formal rulemaking process, including public input, to update definitions such as "exchange," "broker," and "clearing agency" for decentralized finance (DeFi) platforms. Atkins also pointed out the need for clearer regulatory guidance on crypto vaults, which enable users to deploy digital assets into yield-generating strategies. These proposed changes could create the first binding legal framework for DeFi applications worldwide. The crypto industry has largely welcomed Atkins’ remarks, viewing them as a notable shift from the SEC’s previous enforcement-driven stance.