SEC and CFTC Strengthen Collaboration
During the ETHDenver conference, SEC Chair Paul S. Atkins and Commissioner Hester M. Peirce shared new developments in crypto asset regulation. The SEC plans to deepen cooperation with the Commodity Futures Trading Commission (CFTC) through 'Project Crypto' to align regulatory approaches and develop joint rulemaking frameworks.
Testing Regulatory Innovation
Atkins revealed that the SEC is exploring an 'Innovation Exemption' mechanism to permit limited trading of tokenized securities on emerging platforms such as automated market makers (AMMs). Under specific conditions, qualifying projects could receive temporary regulatory relief, helping shape the foundation for long-term oversight models.
Clarifying Regulatory Boundaries
In response to recent market volatility, Atkins emphasized that the agency's responsibility lies in ensuring transparent disclosure practices rather than managing price movements. He highlighted that investor protection stems from building compliant and efficient market infrastructures.
- Regulators won't assume responsibility for crypto price fluctuations
- Focus remains on transparency and market integrity
- Framework development requires real-world testing
Prioritizing Value-Driven Innovation
Commissioner Peirce added that sustainable progress depends on building practical use cases. She stressed that regulatory improvements should enable technological innovation rather than fuel speculative trading activities.