The Blockchain Affiliation has urged the U.S. Securities and Change Fee (SEC) to cease making use of fairness market constructions to the crypto business. In a proper response to SEC Commissioner Hester Peirce’s request for enter on crypto buying and selling practices, the affiliation argued that present approaches should not appropriate for the distinctive options of blockchain expertise.
The affiliation’s letter, submitted on Could 2, 2025, focuses totally on matters associated to buying and selling, clearing, settlement, and custody within the digital asset area. The group represents a variety of crypto corporations, together with Coinbase, Ripple, and Uniswap Labs.
Blockchain Affiliation Request for Versatile Crypto Regulation
In keeping with a recent thread on X, the Blockchain Affiliation is looking on the SEC to undertake a extra versatile and evolving regulatory method for crypto property below the new US SEC chair Paul Atkins. The prevailing construction was designed for the normal fairness markets, it says, and it doesn’t issue the decentralized and actual time nature of blockchain based mostly techniques.
“The Affiliation urged the Fee to chorus from adopting guidelines, insurance policies, or steerage that may restrict who can use blockchain expertise or what the expertise can be utilized for,” it mentioned. Additionally they mentioned that blockchain facilitates improvements like actual time settlement, disintermediation and decrease transaction prices.
Their letter suggests modernizing finest execution requirements by inserting emphasis on the obligation of affordable diligence and will increase in transparency. They as a substitute advocate enhanced disclosure as a substitute of imposing strict guidelines ordering safety as is the case in equities.
Calls to Acknowledge Blockchain Transparency and Privateness Dangers
The Blockchain Affiliation additionally made word of blockchain’s open, verifiable knowledge construction as a important instrument to monitoring regulatory habits. Regulators ought to as a substitute use trade APIs and knowledge which might be publicly obtainable and never collect delicate private knowledge, they advisable.
The affiliation, nevertheless, did word that there’s nonetheless a ‘privateness danger,’ citing a June 2024 piece penned by coverage government Marisa Tashman Coppel. The group mentioned that amassing an excessive amount of private knowledge may enhance the potential to be used towards customers with out enhancing surveillance.
As well as, the Blockchain Affiliation additional defined that the blockchain’s transparency permits regulators to trace exercise in real-time with out interfering with consumer privateness. The affiliation believes this gives a greater path for regulatory compliance in comparison with conventional recordkeeping strategies.
Previous and Current US SEC Approaches In contrast
Of their submission, the Blockchain Affiliation criticized previous SEC management for trying to suit crypto markets into equity-based fashions. Beneath former SEC Chair Gary Gensler, the company typically handled most digital property as securities and pursued enforcement actions towards a number of main corporations.
The affiliation claims this method didn’t account for blockchain’s distinct options.
“The earlier administration tried to mould crypto market construction alongside the traces of a stylized view of the fairness markets,” the letter mentioned.
The group now helps the route of the present administration. Chair Paul Atkins, who changed Gensler, has expressed help for working with lawmakers to construct a crypto-friendly framework. Since taking on, Atkins and former appearing Chair Mark Uyeda have launched a brand new crypto activity power and hosted public roundtables to assemble suggestions.
Business Developments and Regulatory Shifts
Because the SEC reassesses its technique, different main crypto-related occasions have unfolded. This week, the company closed its investigation into PayPal’s PYUSD stablecoin with out enforcement motion. The company described its discussions with PayPal as productive.
In parallel, Ripple co-founder Chris Larsen met with SEC Chair Atkins. Though the agenda was not disclosed, analysts imagine the continued XRP lawsuit might have been mentioned. In the meantime, the SEC and Binance have collectively requested extra time of their authorized proceedings, asking for a 60-day pause.
Throughout the Atlantic, the UK’s Monetary Conduct Authority can also be gathering suggestions from the general public and the business. The UK regulator is exploring methods to outline and handle crypto-related providers below nationwide legislation, aiming to deliver extra readability to the digital asset area.
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