SEC chair says most tokens are not securities, backs ‘super-app’ platforms

US Securities and Exchange Commission (SEC) Chair Paul Atkins said that “most crypto tokens are not securities,” portion outlining a sweeping program to integrate crypto activities similar trading, lending and staking nether a unified regulatory framework.

“It is simply a caller time astatine the SEC,” Atkins said during a keynote code astatine the Organization for Economic Cooperation and Development (OECD) Roundtable successful Paris connected Wednesday.

“Policy volition nary longer beryllium acceptable by advertisement hoc enforcement actions,” helium added, contrasting the erstwhile administration’s aggressive crackdown connected crypto firms. “We volition supply clear, predictable rules of the roadworthy truthful that innovators tin thrive successful the United States,” Atkins said.

Under the Project Crypto initiative, the SEC aims to modernize its securities regulations to accommodate blockchain-based fiscal markets. According to Atkins, the President’s Working Group connected Digital Asset Markets has already delivered a “bold blueprint” to enactment this mission.

Paul Atkins gives remarks connected Project Crypto. Source: SEC

Related: SEC Approval Of Listing Standards Can Mainstream Crypto ETFs

SEC opens doorway to crypto “super-apps”

The SEC’s updated strategy includes allowing platforms to run arsenic “super-apps” that tin facilitate trading, lending and staking of integer assets nether 1 regulatory umbrella. Atkins said that these platforms should besides person the flexibility to connection aggregate custody solutions.

“I judge regulators should supply the minimum effectual dose of regularisation needed to support investors, and nary more,” Atkins stated. “We should not overburden entrepreneurs with duplicative rules that lone the largest incumbents tin bear.”

Atkins besides praised the European Union’s Markets successful Crypto-Assets (MiCA) framework, saying it provides “a broad integer assets regime” and noted that US policymakers could larn from Europe’s aboriginal regulatory steps.

The SEC main called for planetary practice to “facilitate much innovative markets.” “Working together, arsenic Alexandre de Tocqueville mightiness person enactment it, we tin ‘extend the sphere’ of state and prosperity,” helium concluded.

Related: SEC pushes backmost decisions connected Bitwise, Grayscale crypto ETFs to November

EU tightens crypto grip for banks

Last month, the European Banking Authority (EBA) finalized rules that volition require EU-based banks to clasp importantly much superior against unbacked cryptocurrencies similar Bitcoin (BTC) and Ether (ETH). These draught regulatory standards are present pending reappraisal by the European Commission.

Under the projected framework, unbacked integer assets specified arsenic Bitcoin autumn into “Group 2b” and transportation a hefty 1,250% hazard weight, meaning banks indispensable acceptable speech a important superior buffer.

The EBA’s blimpish attack contrasts with moves successful different jurisdictions. In the US, the FDIC present allows supervised banks to engage successful crypto activities without anterior approval, portion Switzerland has updated its DLT laws to enactment crypto custody and stablecoin guarantees.

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