SEC Chair Atkins Proposes 'Innovation Pathway' for On-Chain Trading Systems

May 10, 2026

SEC Chairman Paul Atkins outlined on May 8, 2026, before the Special Competitive Studies Project AI+ Expo how the agency intends to update regulations for on-chain markets. The SEC is evaluating formal rulemaking on how securities laws apply to blockchain-based trading systems. Atkins urged Congress to advance the CLARITY Act for stronger certainty than agency rulemaking alone, while pausing aggressive enforcement under predecessor Gary Gensler.

SEC Innovation Pathway proposal

▪The SEC under Paul Atkins proclaimed that the SEC will keep moving forward in its work to accommodate markets moving onchain.
▪Securities and Exchange Commission Chair Paul Atkins outlined how the SEC intends to update its regulations for onchain markets on May 8, 2026.
▪Paul Atkins delivered remarks before the Special Competitive Studies Project AI+ Expo on May 8, 2026.

Regulatory scope expansion

▪The SEC is examining when yield-bearing crypto vaults should be regulated by the Securities Act and Advisers Act.
▪The SEC is evaluating formal rulemaking regarding how securities laws apply to onchain trading systems.
▪The SEC is assessing when existing regulations governing exchanges, broker-dealers, and clearing agencies should apply to blockchain-based trading protocols, software interfaces, and settlement infrastructure.

CLARITY Act status

▪Paul Atkins urged Congress to progress the CLARITY Act to President Trump's desk.
▪Paul Atkins argued that the CLARITY Act legislation will provide stronger long-term certainty than agency rulemaking alone.
▪The SEC under Paul Atkins is working to bring onchain markets within the existing regulatory fold while the CLARITY Act remains stalled.

Atkins enforcement posture

▪The SEC has made clear that it will not allow crypto markets to operate in regulatory limbo indefinitely.
▪The SEC under Paul Atkins paused the wave of aggressive enforcement actions levied under Gary Gensler's management.
▪The SEC is already equipped with tools it needs to police the crypto industry even absent the passage of the CLARITY Act.