U.S. SEC Chairman: On-chain capital markets and AI-driven finance are about to emerge, which will encourage rather than stifle

The U.S. SEC's regulatory strategy for the cryptocurrency industry will shift towards supporting innovation.

On Wednesday, September 10, at a roundtable meeting of the OECD held in Paris, SEC Chairman Paul S. Atkins stated that digital assets have entered a new phase, and the SEC will bid farewell to its past hardline enforcement stance, moving towards providing clearer rules and support for financial innovation, especially in the digital asset space.

He believes that the previous hardline enforcement approach to suppressing cryptocurrencies was not only ineffective but also detrimental to U.S. jobs, innovation, and capital. He revealed that this new direction is in response to President Trump's call to "make America the world's cryptocurrency capital."

Farewell to "Enforcement-Based Regulation," Launching the "Crypto Project"

Atkins harshly criticized the SEC's past practices in his speech, stating that it "weaponized investigations, subpoenas, and enforcement powers to suppress the cryptocurrency industry," forcing American entrepreneurs to spend funds on legal defenses instead of business development. He emphasized, "That chapter belongs to history," and declared, "A new day has arrived for the SEC."

According to Atkins, the "Crypto Project" is a comprehensive initiative aimed at modernizing securities regulations to support the market's transition to on-chain operations. The implementation of this plan will be based on the "bold blueprint" established by the President's Working Group on Digital Asset Markets. Its core goal is to provide clear guidance for innovators.

Clarifying Regulatory Boundaries: Most Tokens Are Not Securities, Supporting "Super Apps"

Atkins clarified the priorities of the "Crypto Project":

First, there must be certainty regarding the securities status of crypto assets. He pointed out, "Most crypto tokens are not securities, and we will clearly delineate the boundaries." This means the SEC will work to provide clear guidance to market participants, reducing legal uncertainty.

Second, ensuring that entrepreneurs can raise funds on-chain without worrying about endless legal risks.

Third, the SEC will allow innovation in "super app" trading platforms to increase choices for market participants. This means platforms will be able to offer various services such as trading, lending, and staking under a single regulatory framework.

Atkins stated that the SEC will collaborate with other agencies to ensure that platforms can provide various crypto asset services within one regulatory system. He advocates for a "minimum effective dose" regulatory philosophy, aiming to avoid redundant and cumbersome rules that restrict innovation.

On-Chain Capital Markets and AI-Driven Finance Are Coming Soon

Looking ahead, Atkins envisioned a new financial landscape shaped by artificial intelligence and blockchain technology. He predicted that on-chain capital markets and "AI-driven finance" will soon emerge, where autonomous AI agents will execute trades, allocate capital, and manage risks at speeds unattainable by humans, embedding securities law compliance into their code He believes that the combination of AI and blockchain technology will bring significant benefits, including faster markets, lower costs, and broader access to strategies that were once exclusive to large Wall Street firms. In this way, individual capabilities can be enhanced, market competition strengthened, and new prosperity unlocked.

In this regard, the responsibility of the U.S. government is to "set common-sense guardrails while eliminating regulatory barriers that stifle innovation." Atkins emphasized:

On-chain capital markets and proxy finance are just around the corner, and we choose to embrace it with leadership, freedom, and growth.

In his speech, Atkins also acknowledged the progress of international peers, particularly praising the European Union's Markets in Crypto-Assets Regulation (MiCA) as a comprehensive model for digital asset regulation, and believes that the U.S. can learn from it. Nevertheless, he made it clear that there is a determination to "ensure that the U.S. leads in creating an economic environment that supports financial innovation."