Blockchain Association Urges SEC to Drop Equity Rules for Crypto Regulation
By: cryptosheadlines|2025/05/03 16:30:01
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Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com The Blockchain Association wants the SEC to stop using equity market rules for crypto regulation.Crypto firms say blockchain needs flexible rules that match its real time and transparent structure.The SEC is reviewing its crypto approach as leaders meet with industry and close older investigations.The Blockchain Association has asked the U.S. Securities and Exchange Commission to stop applying equity rules to crypto markets. The group submitted its formal response on May 2, 2025, after Commissioner Hester Peirce called for input on crypto market practices.1/ Today, @BlockchainAssn submitted our response to @HesterPeirce‘s “There Must Be Some Way Out of Here” request for input on trading-related topics (focusing most of our response on questions 15-19 in the RFI). Here’s Peirce’s post from Feb:https://t.co/uSJTZuKjfu— Marisa Tashman Coppel (@MTCoppel) May 2, 2025The association argues that traditional equity structures do not suit blockchain-based systems. It emphasizes that the decentralized nature of blockchain calls for updated and specific regulation.Crypto Industry Leaders Back the RequestThe Blockchain Association represents firms like Coinbase, Ripple, and Uniswap Labs. It claims the existing SEC framework ignores blockchain’s core features. These include real-time settlement, transparent data, and disintermediation of middlemen.The group wants the SEC to stop imposing strict equity-style rules. Instead, it calls for greater transparency and flexible standards. They say current enforcement limits how blockchain technology can evolve and expand.Focus on Trading, Settlement, and CustodyThe association’s letter focuses on trading, clearing, settlement, and custody. It urges the SEC to avoid restricting how blockchain is used or who can use it.They suggest modernizing “best execution” rules by stressing diligence and openness. They argue that forced protections used in equities do not fit digital assets.Support for Real-Time Data MonitoringThe group says blockchain’s open data allows real-time monitoring without gathering personal user data. It urges the SEC to use public exchange APIs rather than collecting sensitive information.They cite privacy concerns linked to excessive data collection. The group references a 2024 report from policy head Marisa Tashman Coppel that warned of surveillance risks.Criticism of Previous SEC LeadershipThe letter criticizes past SEC policies under former Chair Gary Gensler. It claims the agency forced crypto into outdated financial models. These actions ignored the technology’s unique features, the group argues.The association now supports current Chair Paul Atkins. It notes Atkins’ willingness to engage with lawmakers and the crypto community. Since taking over, he has launched a crypto task force and public roundtables.SEC Shows Signs of ChangeThe SEC recently closed its case into PayPal’s PYUSD stablecoin without penalties. The agency called the talks with PayPal productive. Ripple co-founder Chris Larsen met with Atkins, though details remain unclear. Observers believe the XRP case may have been discussed. At the same time, the SEC and Binance requested a 60-day delay in their case. This shows both sides are exploring further talks.Source link
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