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 crypto 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, liquidity 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 blockchain activity.
Crypto Vaults and Clearing Structures Draw SEC Attention
Another notable area involved onchain clearing and settlement models, particularly systems designed around near-instant execution and algorithmic counterparty management. Atkins argued the SEC should revisit the “clearing agency” definition to determine which general-purpose activities fall outside traditional regulatory treatment when transactions settle automatically through blockchain infrastructure. Crypto vaults emerged as a separate policy priority. Atkins described the products as software applications that allow users to deploy digital assets into yield-generating opportunities onchain. He said: “I think we should consider ways to provide clarity surrounding what are commonly referred to as ‘crypto vaults,’ particularly regarding Securities Act and Advisers Act touch-points.”
The speech also underscored Atkins’ preference for using notice-and-comment rulemaking and exemptive authority to address emerging crypto market structures. He renewed his call for Congress to send the CLARITY Act to President Trump’s desk, arguing that statutory reforms would provide a more durable framework for digital asset markets as blockchain-based financial systems continue expanding.