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Hyperliquid Policy Center Praises SEC Chair Atkins’ On-Chain Agenda Featuring 4 Key Proposals
TL;DR
The Hyperliquid Policy Center commended SEC Chair Paul Atkins for his proposals aimed at clarifying regulations for on-chain markets. Atkins emphasized the need for guidance on how on-chain trading systems fit within existing regulatory frameworks.
Key points
- Hyperliquid Policy Center praised SEC Chair Paul Atkins
- Atkins emphasized clarity for on-chain markets
- Four key areas for regulatory guidance identified
- Future-proof framework proposed for on-chain trading
- Notice-and-comment rulemaking suggested for clarity
Mentioned in this story
Paul AtkinsHyperliquid Policy CenterSecurities and Exchange Commission
The Hyperliquid Policy Center (HPC) praised Securities and Exchange Commission (SEC) Chair Paul Atkins on Friday for what it described as an ambitious effort to improve clarity for on-chain markets.
SEC’s On-Chain Guidance Agenda
Atkins’ remarks centered on four key areas where he said the Commission should provide more guidance on how regulatory principles translate into the context of on-chain activity. He said that participants should have a clear sense of how on-chain trading systems can function within the regulatory perimeter.
Looking ahead, he noted that while the SEC may consider a limited “innovation pathway” soon, he also argued the agency should think about what a future-proof framework could look like.
In his view, that framework would take the form of notice-and-comment rulemaking, and it would specifically address how the SEC’s “exchange” definition applies to on-chain trading systems.
The SEC chair also pointed to the need to clarify how the broker and dealer framework would apply to these activities. He said the Commission should examine issues raised in a recent staff statement on software interfaces, and he suggested that this policy initiative could involve notice-and-comment exemptive rulemaking.
A third area of emphasis was the definition of a “clearing agency” as it applies to on-chain clearing and settlement. Atkins said rulemaking may be necessary to confirm which general-purpose activities fall outside that definition.
Finally, Atkins called for additional clarity surrounding what are commonly referred to as “crypto vaults.” He described crypto vaults as on-chain software applications that allow users to earn yield passively by deploying their assets into yield-generating opportunities on-chain.
He said the Commission should address the relevant Securities Act and Advisers Act touch-points as it considers these policy initiatives.
Why Hyperliquid Policy Center Finds It Promising
Atkins concluded by saying the SEC will keep moving forward to accommodate markets moving on-chain. At the same time, he reiterated his call for Congress to send the CLARITY Act to President Trump’s desk.
Q&A
What are the four key areas of SEC Chair Paul Atkins' on-chain agenda?
Atkins' agenda focuses on providing guidance on regulatory principles as they apply to on-chain trading systems.
How does SEC Chair Paul Atkins propose to improve clarity for on-chain markets?
He suggests a future-proof framework through notice-and-comment rulemaking to clarify how the SEC's exchange definition applies to on-chain activities.
What is the significance of the 'innovation pathway' mentioned by SEC Chair Paul Atkins?
The 'innovation pathway' refers to a potential approach the SEC may consider to facilitate regulatory clarity and support innovation in on-chain markets.
