SEC Chair Paul Atkins signaled that the agency may revisit key securities rules governing onchain financial systems. This marks one of the clearest indications yet that U.S. regulators could move toward a more tailored framework for DeFi markets.
Speaking at the Special Competitive Studies Project AI+ Expo on 8 May, Atkins said existing securities regulations do not always map cleanly onto modern blockchain-based systems.
“Software applications today do not always organize themselves neatly along these categorical lines,” Atkins said while discussing onchain trading systems.
He pointed to how some protocols now combine trading, collateral management, liquidity routing, settlement, and automated yield strategies within a single application.
SEC may revisit core market structure rules
Atkins said the SEC should consider updating how existing rules apply to onchain systems, particularly around exchanges, brokers, dealers, clearing agencies, and crypto “vaults.”
He also suggested that the Commission could explore “limited innovation pathways” and future rulemaking specifically designed for blockchain-based financial infrastructure.
One area of focus is the SEC’s definition of an exchange and how it applies to decentralized trading platforms. Atkins said the Commission may consider a “future-proofed framework” through formal notice-and-comment rulemaking.
He also raised questions around whether automated onchain settlement systems should fall under traditional clearing agency rules.
“When settlement is near-instantaneous and counterparty risk is managed algorithmically, the traditional clearing agency model requires fresh analysis,” Atkins said.
Shift from enforcement toward regulatory accommodation
The speech signals a notable change in tone from the SEC’s more enforcement-focused crypto posture in previous years.
Atkins repeatedly emphasized flexibility, innovation, and regulatory adaptation rather than rigid enforcement.
He compared the current state of the crypto and AI markets to the SEC’s handling of electronic trading systems in the late 1990s, when regulators created Regulation ATS rather than forcing new technologies into older market structures.
He also praised recent SEC staff guidance, no-action letters, and FAQs related to blockchain markets, saying they reduced legal uncertainty for firms experimenting with tokenized and onchain systems.
AI and crypto infrastructure converge
Atkins also addressed artificial intelligence and “agentic finance,” warning that regulators should avoid locking firms into rigid technological standards.
He said AI systems could expand market participation and improve risk management, but added that firms remain responsible for the tools they deploy.
The comments arrive as crypto firms increasingly build infrastructure for AI-driven payments, autonomous agents, and onchain financial automation.
Final Summary
- SEC Chair Paul Atkins signaled potential rule changes for onchain trading systems, clearing models, and crypto infrastructure.
- The speech suggests the SEC may move toward a more tailored regulatory framework for DeFi markets.