The Chairman of the U.S. SEC Speaks on the Regulation of Encryption Assets

At the recent tokenization roundtable, the chairman of the U.S. Securities and Exchange Commission ( SEC ) delivered an important speech on the regulation of encryption assets. He emphasized the importance of the migration of securities from traditional databases to blockchain systems, comparing this transition to the evolution of audio from analog to digital format.

The chairman pointed out that this transformation could fundamentally reshape the securities market, bringing about entirely new ways of issuing, trading, and using. For example, smart contracts can enable automated and transparent dividend distribution, and tokenization can also enhance asset liquidity. In order for the United States to become a global leader in the encryption field, the SEC must keep pace with the times and consider adjusting existing rules to accommodate on-chain assets.

He emphasized that the SEC will no longer rely on temporary enforcement, but will establish practical standards. To this end, the SEC has established a special task force on encryption to coordinate the work of various departments and provide clear guidance for the market.

Regarding issuance, the chairman stated that clear and reasonable guidelines will be established for encryption assets, and consideration will be given to adjusting registration forms to accommodate new technologies. In terms of custody, he supports granting registrants more autonomy and is considering updating the rules to allow for self-custody. In trading, he supports allowing the trading of a wider variety of products and exploring the modernization of the ATS regulatory framework.

The chairman also stated that he would consider granting conditional exemptions for innovative products and services to encourage encryption technology innovation. He looks forward to collaborating with the government and Congress to make the United States the best global participant in the cryptocurrency market.