The Chairman of the SEC in the United States delivers a speech on Crypto Assets regulation

At the recent tokenization roundtable, the SEC chairman delivered a keynote speech on the regulation of Crypto Assets. He pointed out that securities are migrating from traditional databases to blockchain distributed ledger systems, and this shift could fundamentally reshape the securities market.

The chairman likened this transformation to the evolution of audio from analog to digital. Just as digital audio changed the music industry, on-chain securities also have the potential to bring about entirely new ways of issuing, trading, and utilizing securities. For example, using smart contracts for dividend distribution or converting low-liquidity assets into liquid investments.

To make the United States the "global Crypto Assets hub", the SEC must keep up with the times and consider adjusting existing rules to accommodate on-chain assets. The chairman stated that the SEC will no longer rely on temporary enforcement but will establish practical standards. He emphasized three key areas: issuance, custody, and trading.

In terms of issuance, the chairman acknowledged that there are currently very few registered issuances of Crypto Assets, partly due to the difficulty in meeting disclosure requirements. He stated that the SEC will develop new guidelines and consider additional exemptions and safe harbors.

Regarding custody, the chairman supports granting registrants more autonomy. He mentioned that it may be necessary to clarify the definition of "qualified custodians" and allow for self-custody in certain circumstances.

In terms of trading, the chairman supports allowing a greater variety of products to be traded. He has asked staff to explore how to modernize the ATS regulatory framework to better accommodate Crypto Assets.

The chairman also suggested that conditional exemptions could be considered for innovative products and services. He stated that he would coordinate with the government and Congress to make efforts to position the United States as the best participant in the global Crypto Assets market.