SEC Chair Paul Atkins proposed a limited innovation pathway for on-chain trading systems during a May 8 speech. The approach draws from the agency's 1990s handling of electronic markets and aims to provide conditional access before permanent rules are set.
Atkins indicated the SEC could issue targeted guidance such as exemptive relief or conditional no-action letters to allow certain on-chain venues to operate within the regulatory perimeter. This step would precede formal notice-and-comment rulemaking on how crypto platforms align with exchange, broker-dealer, and clearing definitions.