The chairman of the United States securities regulator laid out ambitious proposals to reform the rules that govern capital markets to enable cryptocurrencies and blockchain-enabled trading on Thursday, a major victory in the effort to get special rules made to accommodate digital assets.
As a part of these efforts, Atkins wrote in a speech that he has instructed commission staff to prepare guidance on how to identify when a crypto token is considered a security, and to develop recommendations on an extensive array of disclosures and exemptions.
The chairman of the Securities and Exchange Commission issued sweeping proposals on Thursday to reconstruct the securities regulations that govern capital marketplace to accommodate the digital property and blockchain-based trading and listed digital assets, a significant advancement sought by digital asset managers long standing.
In his remarks, Atkins stated that he has instructed the staff at the Securities and Exchange Commission to develop guidelines on how a crypto token can be classified as a security accompanied by proposals on a broad variety of disclosures and exemptions.
In one of its groundbreaking reports, the White House urged both SEC and Commodity Futures Trading Commission to unleash their existing powers in order to facilitate the trading of digital assets immediately at the federal level.
Trump ran on such a promise last year on the campaign trail by promising to be a crypto president and popularise use of crypto.
This is in complete opposite to the regulators under former Democratic President Joe Biden, who in a quest to safeguard Americans against fraud and money laundering, put the industry under the spotlight. The Biden administration version of SEC is suing the bat exchanges Coinbase (COIN.O), opens new tab, Binance, and tens of others, claiming they are not complying with the laws in the United States. The Trump version of SEC had since dropped these cases.
