SEC Chair Atkins Signals Potential Rulemaking for Onchain Markets and AI Finance
SEC Chair Paul Atkins, speaking at the AI+ Expo in Washington on May 8, 2026, indicated the agency is considering formal rulemaking to adapt securities regulations for blockchain-based trading systems and AI-powered financial applications. He noted that onchain market structures often combine functions of brokers, exchanges, and clearinghouses into single protocols, blurring traditional regulatory lines. Atkins emphasized the need to clarify how the SEC views these hybrid models through notice-and-comment rulemaking and exemptive authorities. Atkins linked the rise of AI-driven financial systems with increasing demand for blockchain infrastructure, arguing that AI agents will participate in markets at machine speed, while blockchain rails enable instant value movement. He urged the SEC to avoid locking emerging technologies into outdated rules, saying the agency's role is to set rules and referee, not pick winners. His remarks underscore a shift from the enforcement-heavy approach of predecessor Gary Gensler toward a more guidance-based stance under the Trump administration. For wallet and key holders, this signals a potential regulatory framework that could legitimize onchain trading and settlement, reducing legal uncertainty for platforms offering such services. However, the SEC's focus on clarifying rules may lead to stricter requirements for protocols handling assets, potentially impacting self-custody solutions and decentralized applications. Users should monitor developments to understand how new classifications might affect their access to or use of onchain markets and automated financial tools.
Key facts
- SEC Chair Atkins announced potential rulemaking for blockchain-based trading and settlement systems.
- Atkins highlighted that onchain protocols combine broker, exchange, and clearinghouse functions.
- He linked AI-driven finance with demand for blockchain infrastructure for instant settlement.
- The SEC is shifting from enforcement-heavy approach to guidance under the Trump administration.
- Atkins supported congressional efforts to pass crypto market structure legislation like the CLARITY Act.