SEC hints at new 'rules of play' for crypto trading

The rules governing how money moves are about to change. Speaking at the AI+ Expo in Washington on May 8, 2026, SEC Chairman Paul Atkins announced that the agency is preparing a new regulatory framework for blockchain-based markets and artificial intelligence in finance.

Atkins argued that the financial world is moving away from traditional offices and toward "onchain" systems where software handles the heavy lifting. 

Because digital asset firms are increasingly shifting their activity to the blockchain, the Securities and Exchange Commission (SEC) is looking to create formal rules that keep pace with technology.

Related: Latest SEC move could change how crypto investors time the market

Historically, financial markets relied on a series of different players: brokers to place trades, exchanges to host them, and clearinghouses to settle the money. Atkins noted that modern blockchain protocols now combine all these jobs into one piece of code.

"A single protocol can execute a trade, manage collateral, route liquidity, execute trading strategies through vault structures and settle the transaction," Atkins explained. 

He described these new systems as a hybrid of traditional and decentralized finance. To provide clarity, the SEC plans to use "notice and comment rulemaking," which allows the public and experts to weigh in before rules are finalized.

A new way to referee the market

This approach marks a distinct shift from the past. Under previous leadership, the SEC often relied on lawsuits to define the rules. Under the current administration, however, the agency is focusing on guidance and staff statements to reduce legal confusion.

Atkins framed this evolution as a necessity for an AI-driven world. He believes that AI agents will eventually make financial decisions and trade at "machine speed," while blockchain allows that value to move instantly. 

"Our job is to set the rules of play and referee the game, not to pick the winning team," Atkins stated.

Most Popular on TheStreet Roundtable:

• JPMorgan predicts a $30B Bitcoin buy is happening this year
• Senator raises alarm over Meta's 'deeply troubling' crypto plans
• Another analyst sees Bitcoin hitting $1M within five years

Focusing on 'crypto vaults' and new laws

Atkins additionally pointed to “crypto vaults” as another area requiring clearer regulatory guidance. He described crypto vaults as onchain software applications that allow users to passively earn yield by deploying assets into blockchain-based opportunities.

The SEC Chairman identified four specific areas where the SEC wants to provide more detail:

• Onchain trading: Defining how blockchain trading systems fit into the law.

• Brokers and dealers: Analyzing how the definitions for "brokers" and "dealers" should apply to new activities, specifically addressing issues regarding software interfaces.

• Clearing and settlement: Rethinking the "clearing agency" model for a world where trades are settled instantly and risk is managed by code rather than humans.

• Crypto vaults: Clarifying how the Securities Act applies to "crypto vaults", apps that allow users to earn passive yield on their digital assets.

Atkins emphasized that the SEC's role is to protect investors and maintain fair markets, not to dictate which technology "wins." He warned that being too rigid or suspicious of novelty could "suffocate the spark" of American ingenuity. 

He cited the offshore growth and eventual collapse of the FTX exchange as a warning of what happens when innovation is forced out of the United States by legal uncertainty.

While the SEC works on these updates, Atkins continues to push for Congress to pass the CLARITY Act. This legislation would create a shared rulebook between the SEC and the Commodity Futures Trading Commission (CFTC). 

Atkins warned that if the U.S. remains too rigid, innovation will simply move offshore—a mistake he illustrated by referencing the collapse of the offshore exchange FTX.

By modernizing these century-old systems, Atkins aims to ensure that American markets remain the most resilient in the world for the next 250 years.

Related: Major U.S. banks push back on new CLARITY Act proposal