The Chairman of the Securities Commission's Attitude and Outlook on Crypto Assets Regulation

At the recent tokenization roundtable meeting, the chairman of the Securities Commission expressed important views on Crypto Assets regulation. He pointed out that as securities migrate from traditional databases to blockchain systems, this shift could fundamentally change the securities market, much like the digital audio revolution.

The chairman emphasized that in order for the United States to become a global leader in the Crypto Assets field, regulatory agencies must keep pace with innovation and consider adjusting existing rules to accommodate on-chain assets. He stated that the committee will no longer rely on temporary enforcement actions but will establish practical standards and focus on regulating fraud and market manipulation.

Regarding issuance, the chairman pledged to establish clear and reasonable guidelines for the issuance of Crypto Assets. He criticized the past practices of "ostrich mentality" and "shoot first, ask questions later," emphasizing the need to adjust registration forms to accommodate new technologies. He has asked staff to consider whether additional guidance, exemptions, and safe harbors are needed to open pathways for the issuance of Crypto Assets within the United States.

Regarding custody, the chairman supports granting registrants more autonomy. He mentioned the impact of rescinding a certain accounting announcement and stated the need to clarify which custodians meet the qualifications set by relevant laws. He also suggested that it may be necessary to update the rules to allow for self-custody in certain cases.

In terms of trading, the chairman supports allowing registrants to trade a wider variety of products on the platform. He mentioned the concept of "super apps" and believes that the federal securities laws do not prohibit registered broker-dealers from facilitating non-securities transactions. He has asked staff to explore how to design a modern regulatory framework for trading systems to better accommodate Crypto Assets.

Finally, the chairman expressed a willingness to consider conditional exemptions for innovative products and services to prevent market participants from being forced to turn overseas. He looks forward to coordinating with the government and Congressional colleagues to make the United States the best place in the world for Crypto Assets market participation.