SEC Chair Paul Atkins Considers Rulemaking for Onchain Trading, Broker-Dealer, Clearing, Crypto Vaults

U.S. Securities and Exchange Commission Chair Paul Atkins said the agency is considering formal rulemaking to update how securities regulations apply to onchain financial markets, including onchain trading systems, broker-dealer activity, clearing functions, and crypto vaults.

“SEC chair Atkins signals new rules for onchain markets, AI-driven finance The SEC chair linked the rise of AI-powered financial systems with growing demand for blockchain-based market infrastructure and automated settlement”

@coindesk

Atkins spoke at the Special Competitive Studies Project AI+ Expo in Washington on May 8, framing onchain market structures as “often hybrid in nature, combining elements of what are often referred to as ‘traditional’ and ‘decentralized’ finance.”

@coindesk

He said the SEC may consider a limited innovation pathway in the near term while also pursuing notice-and-comment rulemaking tied to how the “exchange” definition applies to onchain trading systems.

Atkins also urged Congress to send the CLARITY Act to President Trump’s desk, arguing statutory reforms would provide a more durable framework for digital asset markets as blockchain-based financial systems expand.

In parallel, CoinDesk reported that Atkins’ remarks gained momentum with crypto-linked equities, as Coinbase (COIN) rebounded 10% from session lows after Thursday’s earnings report showed a $398 million quarterly loss.

Atkins singled out “crypto vaults” as a next regulatory frontier, describing them as software applications that allow users to deploy digital assets into yield-generating opportunities onchain.

In the Crypto Times, Atkins said the SEC is considering new rulemaking and guidance around blockchain-based financial infrastructure, including onchain trading systems, automated clearing mechanisms, and yield-generating crypto applications.

AMBCrypto

The Crypto Times also quoted Atkins calling for the CLARITY Act, saying, “I continue to echo my call for Congress to send the CLARITY Act to President Trump’s desk.”

CoinGape similarly reported that Atkins said the Commission could provide clarity around crypto vaults, especially regarding the Securities Act and Advisers Act touchpoints, while also considering a limited innovation pathway for on-chain trading systems.

Across the coverage, the thrust of the SEC chair’s message was that regulators should clarify how existing categories apply when software protocols combine execution, collateral management, liquidity routing, settlement, and automated trading strategies within a single system.

Beyond onchain trading and vaults, the SEC also issued guidance clarifying that tokenized securities remain subject to federal securities laws regardless of their blockchain form.

“SEC Chair Paul Atkins signaled a broader shift toward onchain market frameworks, pointing to possible rulemaking for trading systems, broker-dealer activity, clearing functions, and crypto vaults”

Bitcoin News

TradingView reported that the SEC published a joint statement through its Division of Corporate Finance, Division of Investment Management, and Division of Trading and Markets, defining a tokenized security as a financial instrument already covered by federal securities law but formatted or represented as a crypto asset.

The SEC’s guidance said companies can incorporate distributed ledger technology into official ownership records without changing the legal status of the security, and that disclosure obligations, reporting, and investor protection remain unchanged.

TradingView also noted that custodial and synthetic tokenization models can expose holders to additional risks related to intermediaries, and that regulators said they are open to collaborating with companies as tokenized stocks move toward regulated on-chain trading.

CoinDesk’s broader market framing tied the policy shift to crypto-linked equities and regulation-linked expectations, while the SEC chair’s onchain remarks emphasized notice-and-comment rulemaking and exemptive authorities as markets move further onchain.