SEC Unveils Major Overhaul of Crypto Regulations

The U.S. Securities and Exchange Commission is planning an extensive overhaul of capital markets regulations to better integrate cryptocurrencies and blockchain-based trading. This initiative, announced on Thursday, is seen as a victory for the digital asset industry, which has long advocated for specific regulatory rules.

SEC Chair Paul Atkins stated that he has tasked commission staff with developing guidelines to assess when a cryptocurrency token qualifies as a security. Additionally, the staff will propose various disclosures and exemptions to enhance market transparency.

This move marks a significant shift in the regulation of digital assets, acknowledging the growing influence of cryptocurrency and blockchain in financial markets. The industry has been pushing for such regulatory clarity, and this overhaul could pave the way for broader adoption of digital assets.

(With inputs from agencies.)