SEC Chairman Paul Atkins said Friday that the agency is considering changes to how securities regulations apply to blockchain-based financial markets and AI-based financial applications, as digital asset companies increasingly move their trading and settlement activities on-chain.
Speaking at the AI+ Expo in Washington, Atkins said the SEC is considering establishing formal rules regarding on-chain trading systems, blockchain settlement infrastructure, automated financial applications and crypto vaults that are increasingly blurring the lines between traditional players.
Existing securities rules were designed around traditional market intermediaries such as broker-dealers, exchanges and clearing houses, he argued, while new blockchain systems often combine these functions into a single software protocol. Atkins’ predecessor, Gary Gensler, had shared a similar view, although he focused more on the centralized exchanges that the SEC said at the time provided these different functions under one roof, primarily through lawsuits.
“A single protocol can execute a transaction, manage collateral, route liquidity, execute trading strategies through vault structures, and settle the transaction,” Atkins said.
“We need to remember that on-chain market structures today are often hybrid in nature, combining elements of what is often called ‘traditional’ and ‘decentralized’ finance,” he said. “We should clarify how the Commission considers the range of models that may involve our statutes through notice and comment rules, using our exemption powers where necessary and prudent.”
Atkins’ remarks highlighted the latest step in the regulatory agency’s shift away from the enforcement-heavy approach under former Chairman Gary Gensler. Under President Donald Trump’s administration, the SEC has issued crypto-related staff guidance, no-action measures, and public statements aimed at reducing legal uncertainty for digital asset companies.
The president outlined potential changes as part of a broader shift toward automated, AI-driven financial infrastructure. He argued that artificial intelligence agents will increasingly participate in markets and make financial decisions at machine speed, while blockchain rails will allow these systems to move value instantly.
The SEC, he said, should avoid locking emerging technologies into outdated rules.
“Our job is to set the rules of the game and referee the game, not to pick the winning team,” Atkins said.
He also reiterated his support for congressional efforts to pass crypto market structure legislation, including the CLARITY Act, which would establish a regulatory framework for digital assets shared between the SEC and the Commodity Futures Trading Commission (CFTC).
