SEC prepares weeping overhaul of U.S. crypto asset regulations

The U.S. Securities and Exchange Commission (SEC) on Thursday unveiled its latest rulemaking agenda, heavily centered on crypto asset regulation regulation and the integration of digital assets into the broader U.S. economy.

Of 20 proposals released, nearly half address crypto directly. The SEC, which oversees the nation’s $120 trillion capital markets, is turning its attention to a sector worth roughly $3.8 trillion which is still small in comparison, but increasingly influential.

“This regulatory agenda reflects that it is a new day at the Securities and Exchange Commission,” SEC Chair Paul Atkins said in a statement. “A key priority of my Chairmanship is clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.”

The push reflects the Trump administration’s broader stance on easing rules for the industry, part of what the SEC has called its “Project Crypto” initiative.

Redefining market foundations

The most consequential element of the SEC’s plan may be proposals to revisit core definitions in securities law, which have remained largely unchanged since the 1930s. One initiative would create explicit frameworks for the offer and sale of digital tokens, accompanied by exemptions and safe harbors tailored to crypto asset regulation regulation.

Another proposal would amend interpretations of the Securities Exchange Act of 1934, enabling crypto assets to be traded directly on U.S. securities exchanges. This week, the SEC and the Commodity Futures Trading Commission (CFTC) jointly encouraged exchanges to explore listing spot crypto assets, an unprecedented step in aligning securities and commodities markets around digital assets.

The agency also signaled it could redefine what constitutes a “dealer” or “broker” under federal law. These terms are critical to the SEC’s jurisdiction, determining which firms must comply with stringent financial responsibility rules. Any carve-outs specific to crypto could fundamentally alter how trading platforms, custodians, and intermediaries operate in the U.S.

“Revisiting these definitions is not just semantics,” said Sheila Warren, CEO of the Crypto Council for Innovation. “It could reshape the market structure for digital assets and provide long-needed clarity, though it also raises questions about investor protections.”

Balancing innovation with enforcement

The SEC insists that the proposed changes to crypto asset regulation regulation will not mean deregulation, but rather a modernized framework. By offering clearer rules for token issuance, custody, and exchange listings, the agency aims to encourage legitimate innovation while clamping down on fraud.

Atkins stressed that the reforms will not eliminate oversight: “We want to create pathways for responsible growth, but we will continue to bring enforcement actions against those who mislead investors or skirt the law,” he said.

Still, critics warn that easing compliance obligations for certain players could weaken safeguards put in place since the New Deal era. The possibility of broker-dealer carve-outs, in particular, has raised eyebrows among investor advocacy groups, who argue such changes could erode consumer protections.

“The danger is moving too far, too fast,” said Barbara Roper, Senior Fellow at the Consumer Federation of America. “Rewriting decades of precedent in the name of crypto asset regulation regulation could create gaps that sophisticated actors exploit.”

Political and market implications

The SEC’s aggressive agenda highlights the Trump administration’s commitment to making the U.S. more crypto-friendly. Previous administrations often pursued enforcement-first approaches, but the current shift emphasizes integration into traditional finance.

If implemented, the proposals could accelerate the U.S. role in the global digital asset economy. Exchanges listing spot crypto assets domestically would reduce reliance on offshore markets, while clear issuance rules could attract new projects to launch in the U.S. rather than abroad.

For policymakers, however, the key question remains whether the SEC can balance innovation with investor protection. The success or failure of these proposals will set the tone for how states, Congress, and federal regulators engage with blockchain technologies in the years ahead.

“Crypto markets are maturing,” said Hester Peirce, SEC Commissioner often dubbed “Crypto Mom.” “By providing a workable framework, crypto asset regulation regulation can support both innovation and the core mandate of investor protection.”

As the proposals move into public comment and eventual rulemaking, the financial industry will closely watch how far the SEC is willing to stretch its statutory definitions and whether Congress steps in to reinforce or restrain the agency’s efforts.