SEC Eyes Rules for Onchain Trading, Clearing and Crypto Vaults

On May 8 in Washington at the Special Competitive Studies Project AI+ Expo, SEC Chair Paul S. Atkins told attendees the agency is weighing new rulemaking covering onchain trading systems, broker‑dealer activity, clearing functions and oversight of crypto vaults.

Atkins described many onchain platforms as integrated systems that combine trade execution, collateral management, liquidity routing, settlement and automated trading features inside a single protocol. He said the agency is examining whether existing securities laws and definitions fit those blockchain-based market structures and indicated it may use notice-and-comment rulemaking as well as limited innovation pathways to clarify how the term ‘exchange’ applies.

The chair flagged several specific topics for review. He asked regulators to examine how broker and dealer definitions apply to onchain activity, including software interfaces used for decentralized finance. He also urged a reexamination of the ‘clearing agency’ definition to determine which general-purpose activities should remain outside traditional clearing rules when transactions settle automatically on blockchains and counterparties are managed by code.

Atkins drew attention to crypto vaults, describing them as software applications that let users deploy digital assets into yield-generating opportunities onchain. He said regulators need clearer guidance on how those products intersect with the Securities Act and the Investment Advisers Act, adding: “I think we should consider ways to provide clarity surrounding what are commonly referred to as ‘crypto vaults,’ particularly regarding Securities Act and Advisers Act touch-points.”

He indicated exemptive rulemaking could be used to create compliance pathways while the agency develops broader rules. Atkins also renewed his call for Congress to pass the CLARITY Act to establish a statutory framework for digital asset markets.

The SEC’s potential actions include formal rule proposals, targeted exemptions and clearer interpretive guidance aimed at trading systems, intermediaries, clearing and custody functions that operate on blockchain infrastructure.