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SEC Eyes 1990s Model for Crypto Market Rules

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SEC Chair Paul Atkins signaled that the agency may adopt a limited 'innovation pathway' for on-chain trading systems, drawing parallels to the regulatory framework established for electronic trading in the 1990s. This approach would allow certain crypto platforms to operate under tailored exemptions while the SEC undertakes formal rulemaking to define how digital asset exchanges fit within existing securities laws. Atkins emphasized that the pathway is intended to foster innovation without compromising investor protection, but cautioned that comprehensive rulemaking will follow standard notice-and-comment procedures. The proposal suggests a pragmatic shift in the SEC's stance, potentially reducing regulatory uncertainty for crypto markets while maintaining oversight.

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