Paul Atkins, Chairman of the US Securities and Exchange Commission (SEC), recently signaled that updates may be made to existing securities regulations in line with the effects of blockchain-based financial markets and artificial intelligence in the field of finance. In his speech at the AI+ Expo event held in Washington, Atkins stated that digital asset companies are increasingly moving their transaction and settlement processes to blockchain infrastructure, so traditional market rules are inadequate to meet expectations.
Traditional Rules Don’t Fit the Reality of Blockchain
According to Atkins’ statements, current securities regulations are mainly based on traditional market players such as brokerage firms, exchanges and clearing houses. However, in new blockchain platforms, a single software protocol can undertake many intermediary functions. Atkins pointed out that on-chain transaction systems, blockchain-based consensus infrastructure, automated financial applications and cryptocurrency vaults have now clearly blurred the boundary between classic players and new technologies.
Atkins reminded that his predecessor, Gary Gensler, had a similar perspective, but during the Gensler period, the SEC focused more on centralized exchanges and their provision of various functions under one roof, which was mostly brought to the agenda through lawsuits.
A protocol can both execute the transaction, manage the collateral, direct liquidity, implement transaction strategies through the vaults, and complete this entire process alone.
“On-chain market structures today often have hybrid features, that is, they can contain many elements of traditional and decentralized finance at the same time,” Atkins said, emphasizing that the Commission should conduct an open and transparent regulatory process on how these models should be addressed in legislation.
New Approach and Fact Analysis from SEC
These words of Atkins show that the SEC has begun to move significantly away from its heavy audit-oriented policy, especially during the previous president’s term. During the Trump administration, the SEC aimed to reduce legal uncertainties by issuing various guidance, waivers and public disclosures providing legal protection for digital asset companies.
Atkins stated that potential new regulations are a requirement for the financial infrastructure to transform into more artificial intelligence-based and automated systems. According to him, artificial intelligence-based algorithms are now rapidly spreading in decision-making and value transfer processes in markets and integrating with blockchain systems.
The SEC should avoid trapping emerging technologies in outdated legislation; Our role is to set the rules clearly and manage the process fairly, not to choose the winner from the beginning.
Regulatory Agenda and Cooperation with Congress
Atkins also stated that these changes are not limited to technological developments only, and that Congress should create a clear framework for crypto markets. Particularly with regulations such as the CLARITY Act, authority sharing is envisaged between the SEC and the Commodity Futures Trading Commission (CFTC) in the regulation of digital assets. In this way, it is aimed to minimize market uncertainties and legal risks.
The U.S. Securities and Exchange Commission is the main agency to ensure order and investor protection in financial markets. This new approach put forward by Atkins is considered an important turning point regarding the advancement of regulation in parallel with technology.
