SEC Chair Paul Atkins Signals New Rules for Onchain Markets and AI-Driven Finance

SEC Chairman Paul Atkins signaled a major shift in U.S. crypto regulation this week after announcing that the Securities and Exchange Commission is preparing to develop new frameworks for onchain financial markets, AI-powered finance systems, and blockchain-based settlement infrastructure. The remarks represent one of the clearest signs yet that regulators are moving away from purely enforcement-driven crypto oversight and toward building formal rules for the next generation of digital financial infrastructure. 

SEC Preparing New Rules for Onchain Trading

Speaking at the AI+ Expo in Washington, Atkins acknowledged that existing securities laws do not cleanly fit modern blockchain-based financial systems. He specifically pointed out that many decentralized protocols now combine multiple financial functions into a single automated system, including trading, settlement, collateral management, liquidity routing, and yield generation. 

Atkins said the SEC is now considering new rulemaking around how onchain trading systems should operate within U.S. regulatory frameworks. He suggested the agency may revisit long-standing definitions involving:

• Exchanges
• Brokers and dealers
• Clearing agencies
• Crypto vaults
• Automated settlement systems

The SEC chair indicated that blockchain protocols often blur the lines between these traditional financial categories, creating legal uncertainty under current securities law. 

AI-Driven Finance Is Becoming a Regulatory Priority

A major focus of Atkins’ speech involved the rapid rise of AI-powered financial systems. He warned that artificial intelligence is beginning to reshape trading, risk management, settlement infrastructure, and investment decision-making at a scale regulators can no longer ignore. 

Atkins acknowledged that AI tools can improve efficiency, expand financial access, and enhance market analysis, but also warned that poorly understood or overly concentrated AI systems could introduce systemic risks into financial markets.

Rather than aggressively restricting AI development, Atkins emphasized that the SEC’s role should be to create “rules of play” without dictating which technologies firms are allowed to use. He stated that companies deploying AI systems will remain responsible for how those systems operate and how risks are disclosed to investors. 

SEC Signals More Crypto-Friendly Approach

The comments are being viewed by many industry participants as a major philosophical shift from the SEC’s previous crypto strategy, which relied heavily on lawsuits and enforcement actions. Atkins suggested the agency now recognizes that blockchain infrastructure is becoming a permanent part of global finance rather than a temporary speculative trend. 

He also referenced the success of past regulatory frameworks like Regulation ATS, which allowed electronic trading systems to develop before regulators imposed stricter oversight structures. Atkins implied the SEC may take a similar “innovation-first” approach with blockchain-based financial systems. 

The chairman stressed that the agency wants to avoid pushing innovation offshore — a likely reference to the collapse of FTX and the broader trend of crypto companies relocating outside the United States during previous regulatory crackdowns. 

CLARITY Act Continues Gaining Momentum

Atkins also used the speech to once again support the CLARITY Act, the major crypto market structure bill currently moving through Congress. He argued that while SEC rulemaking can help modernize regulation, long-term certainty ultimately requires Congress to establish formal statutory frameworks for digital assets. 

The CLARITY Act would address several major crypto policy issues, including:

• Token classification
• SEC vs. CFTC oversight
• Stablecoin rules
• DeFi regulation
• Market structure standards

The bill recently regained momentum after lawmakers reached a compromise regarding stablecoin yield rules, one of the biggest obstacles slowing negotiations. 

Crypto Vaults and Onchain Yield Products Under Review

One particularly notable section of Atkins’ speech involved “crypto vaults,” which are blockchain-based yield products allowing users to passively earn returns through automated onchain strategies.

The SEC chair confirmed regulators are now actively reviewing how securities laws and investment adviser rules apply to these systems. This could have major implications for DeFi protocols, liquid staking products, automated yield vaults, and tokenized investment platforms operating throughout the crypto ecosystem. 

Atkins also hinted that the SEC may clarify which types of automated onchain activity fall outside traditional “clearing agency” rules, especially as blockchain settlement systems move toward near-instant transaction finality.