Paul Atkins, president of the Securities and Exchange Commission of the United States, unveiled the Crypto project, an initiative to “modernize the rules and regulations of securities to allow American financial markets to move at the lead”. Speaking to America First Policy Institute, he said that most cryptocurrencies are not titles.
A key objective of Project Crypto is to quickly develop proposals implementing the recommendations of the president’s working group on digital assets, as indicated in the 166 -page report yesterday.
“The Commission and its staff will consider in the coming months to use interpretative, exempt and other authorities to ensure that archaic rules and regulations do not suffer innovation and entrepreneurship in America,” he said.
Regulatory approach to crypto
President Atkins hopes that the SEC staff provide directives on the moment when a cryptocurrency is security or subject to an investment contract, echoing the recent law on the Senate infrastructure which examines these two facets separately. He also hopes that a classification of securities should not be considered negative. For certain crypto titles transactions, the SEC will explore the exemptions and safe ports.
A second task for Project Crypto will be to explore the guard field of cryptography, which is currently very concentrated. He hopes that the SEC staff will adapt the existing rules for the custody to accommodate the crypto and explore the changes if necessary. Exempted loss can also be offered.
Another objective is to support super applications from a regulatory point of view. President Atkins described it as companies offering various services under a single license. For example, another trading system (ATS) supporting cryptography titles and non-tars as well as acting as a broker, participating in cryptography and loans. This could happen “without demanding more state licenses or several federal licenses.”
Turning to the CFTC, he envisages non -security cryptos which are subject to an investment contract could be negotiated on sites not regulated by the SEC, which are supervised by the CFTC.
Tokenized titles
Its fourth point was linked to the titles which are exchanged to the chain, which could involve intermediaries or alternately decentralized automated market. Federal laws in matters of current securities oblige the existence of intermediaries “where markets can work without them”. President Atkins wants to see the two models supported. To allow this, he wishes to see changes in regulations for the national market system (NMS) or listed securities. He underlined his objections to Reg nms when they were implemented 20 years ago. We would add that Citadel titles recently encountered the dry to oppose token titles able to bypass the NM.
Finally, he wants to explore a broader exemption from innovation that would allow recorded and unregistered entities to quickly put offers on the market, even where they do not correspond perfectly to existing regulations. Instead, the exemption would be accompanied by conditions based on principles, would require regular relationships and respect the standards of compliance with tokenization.
President Atkins concluded: “We will not monitor the sidelines. We will go. We are going to build. And, we will make sure that the next chapter of financial innovation is written here in America. ”
