- Blockchain Association urges SEC to adopt crypto-specific rules, not equity-based standards.
- Blockchain’s transparency supports real-time oversight without compromising user privacy.
- SEC under Paul Atkins signals a shift toward industry collaboration and flexible regulation.
Blockchain Association formally asked the United States Securities and Exchange Commission to reassess its regulatory framework for digital assets which focuses on equity-based standards.
On May 2, 2025, the Association responded fully to Commissioner Hester Peirce’s inquiry by outlining blockchain technology’s unique characteristics. The letter recommends the development of a regulatory model that matches the decentralized and real-time nature of blockchain technology.
Push for Reform in Market Structure Rules
According to a recent thread on X, the Blockchain Association is calling on the SEC to adopt a more flexible and evolving regulatory approach for crypto assets under the new US SEC chair Paul Atkins. The Association’s response underlines that current SEC rules are based on traditional equity markets that rely on intermediaries.
Blockchain technology, by contrast, allows for instant settlement and reduces the need for middlemen. This shift in structure presents a case for rules that do not restrict how or who can use blockchain networks.
The group has suggested updates to best execution standards with a focus on increased transparency and reasonable diligence. It opposes rigid rules designed for equities, arguing these hinder innovation and operational efficiency in crypto markets.
Moreover, the Association urged regulators to move toward a disclosure-driven approach rather than imposing structural limits on participants.
Additionally, the Association stated that applying equity-style rules to crypto could risk stalling the progress of decentralized finance in the United States. Member firms including Coinbase, Ripple, and Uniswap Labs have backed the move for flexible oversight.
Blockchain’s Transparency Supports Oversight
The Blockchain Association highlighted blockchain’s transparent and verifiable data structure as a strong asset for regulatory monitoring. Publicly available data, such as exchange APIs, offer real-time insights without collecting private user data. The Association urged the SEC to rely more on these mechanisms instead of traditional surveillance models.
Despite the advantages of transparency, the group acknowledged certain privacy risks. In a referenced June 2024 article by Marisa Tashman Coppel, the group warned against excessive personal data collection. Such practices could lead to misuse while offering little benefit in terms of oversight or security.
According to the submission, regulators should instead use the publicly accessible nature of blockchain to monitor transactions while protecting user privacy. The Association argued that this structure provides a more effective and less intrusive model than traditional compliance methods.
Shift in SEC Approach Draws Industry Support
Under new SEC Chair Paul Atkins, the regulatory tone has shifted toward collaboration with the industry. The Blockchain Association welcomed this change, contrasting it with the stricter approach under former Chair Gary Gensler. The earlier administration classified most digital assets as securities and pursued enforcement actions across the sector.
Chair Atkins and former acting Chair Mark Uyeda have launched a crypto task force and public roundtables to gather feedback. These actions signal a willingness to adapt policy frameworks in step with industry development.
The recent closure of the SEC’s investigation into PayPal’s PYUSD stablecoin without action further reflects this shift. In a separate development, Ripple co-founder Chris Larsen held a closed-door meeting with Atkins, while the SEC and Binance jointly requested a delay in ongoing legal proceedings.
