SEC Targets Onchain Trading Rules and Crypto Vault Oversight
Securities and Exchange Commission (SEC) Chairman Paul S. Atkins on May 8 outlined a potential new phase of SEC rulemaking tied to onchain financial markets, pointing to possible proposals covering onchain trading systems, broker-dealer activity, clearing functions, and vaults. Speaking at the Special Competitive Studies Project AI+ Expo in Washington, Atkins indicated the SEC is evaluating whether existing securities frameworks adequately address blockchain-based financial infrastructure. Rather than treating decentralized systems as isolated products, Atkins framed many onchain platforms as integrated financial architectures that combine execution, collateral management, routing, settlement, and automated trading strategies within a single protocol. He noted the Commission 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 stated: “As the Commission considers these policy initiatives, we should remember that onchain market structures today are often hybrid in nature, combining elements of what are often referred to as ‘traditional’ and ‘decentralized’ finance.” The remarks also suggested the SEC may move away from applying rigid category-based interpretations to activity. Atkins indicated the agency should further examine how broker and dealer definitions apply to onchain markets, including software interfaces that facilitate decentralized financial activity. He