Blockchain Association Calls for US SEC to Drop Equity Style Crypto Regulation
By: bitcoin ethereum news|2025/05/03 15:30:02
0
Share
The Blockchain Association has urged the U.S. Securities and Exchange Commission (SEC) to stop applying equity market structures to the crypto industry. In a formal response to SEC Commissioner Hester Peirce’s request for input on crypto trading practices, the association argued that current approaches are not suitable for the unique features of blockchain technology. The association’s letter, submitted on May 2, 2025, focuses primarily on topics related to trading, clearing, settlement, and custody in the digital asset space. The group represents a wide range of crypto firms, including Coinbase, Ripple, and Uniswap Labs. Blockchain Association Request for Flexible Crypto Regulation According to a recent thread on X, the Blockchain Association is calling on the SEC to adopt a more flexible and evolving regulatory approach for crypto assets under the new US SEC chair Paul Atkins. The existing structure was designed for the traditional equity markets, it says, and it doesn’t factor the decentralized and real time nature of blockchain based systems. “The Association urged the Commission to refrain from adopting rules, policies, or guidance that would limit who can use blockchain technology or what the technology can be used for,” it said. They also said that blockchain facilitates innovations like real time settlement, disintermediation and lower transaction costs. Their letter suggests modernizing best execution standards by placing emphasis on the duty of reasonable diligence and increases in transparency. They instead advocate enhanced disclosure instead of imposing strict rules ordering protection as is the case in equities. Calls to Recognize Blockchain Transparency and Privacy Risks The Blockchain Association also made note of blockchain’s open, verifiable data structure as a critical tool to monitoring regulatory behavior. Regulators should instead use exchange APIs and data that are publicly available and not gather sensitive personal data, they recommended. The association, however, did note that there is still a ‘privacy risk,’ citing a June 2024 piece penned by policy executive Marisa Tashman Coppel. The group said that collecting too much personal data could increase the potential for use against users without enhancing surveillance. In addition, the Blockchain Association further explained that the blockchain’s transparency allows regulators to track activity in real-time without interfering with user privacy. The association believes this offers a better path for regulatory compliance compared to traditional recordkeeping methods. Past and Present US SEC Approaches Compared In their submission, the Blockchain Association criticized past SEC leadership for attempting to fit crypto markets into equity-based models. Under former SEC Chair Gary Gensler, the agency often treated most digital assets as securities and pursued enforcement actions against several major firms. The association claims this approach failed to account for blockchain’s distinct features. “The previous administration tried to mold crypto market structure along the lines of a stylized view of the equity markets,” the letter said. The group now supports the direction of the current administration. Chair Paul Atkins, who replaced Gensler, has expressed support for working with lawmakers to build a crypto-friendly framework. Since taking over, Atkins and former acting Chair Mark Uyeda have launched a new crypto task force and hosted public roundtables to gather feedback. Industry Developments and Regulatory Shifts As the SEC reassesses its strategy, other major crypto-related events have unfolded. This week, the agency closed its investigation into PayPal’s PYUSD stablecoin without enforcement action. The agency described its discussions with PayPal as productive. In parallel, Ripple co-founder Chris Larsen met with SEC Chair Atkins. Although the agenda was not disclosed, analysts believe the ongoing XRP lawsuit may have been discussed. Meanwhile, the SEC and Binance have jointly requested more time in their legal proceedings, asking for a 60-day pause. Across the Atlantic, the UK’s Financial Conduct Authority is also gathering feedback from the public and the industry. The UK regulator is exploring how to define and manage crypto-related services under national law, aiming to bring more clarity to the digital asset space. ✓ Share: Kelvin Munene Murithi Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/blockchain-association-calls-for-us-sec-to-drop-equity-style-crypto-regulation/
You may also like

Reduced to a hacker's ATM yet standing tall, the theft of Venus reflects the awkwardness of DeFi
After experiencing over $100 million in bad debts in at least four incidents, Venus remains the leading player in the lending sector on the BNB Chain, making it a rare "survivor" in the crypto space.

Under geopolitical conflicts, a policy window has opened. Can Hong Kong seize this wave of RWA opportunities?
The RWA wave sweeps the globe: the scale of on-chain real assets surged fourfold in one year, exceeding 25 billion USD. Hong Kong, backed by the mainland's "going out" policy window, is accelerating the tokenization process of physical assets from entertainment to real estate.

For Web3, this time Cai Wensheng is determined to get his hands dirty
This industry has experienced too many undignified endings; a bull market and a recovery cannot solve the problem. In the end, it will rely on projects that truly succeed and ecosystems that are genuinely established to win a dignified victory for the crypto OGs.

Ethereum Foundation Sets Up a "Dead Man's Switch," Will the Community Buy It?
The Ethereum Foundation's Manifesto Has Torn the Community Apart: Punk Idealism or Disconnect from Reality?

ConversationArthur Hayes: AI Will Spark Financial Crisis, Wait for Central Bank Money Printing Before Buying Bitcoin
「War Means Printing Money, and Printing Money is Good for Bitcoin」

From Power to Chip: How the Average Person Can Participate in the Wealth Opportunities of the AI Era
Everyone is talking about AI applications, but the real money-maker is the person selling the "shovel."

Venus Exploit Post-Mortem: How to Profit in a Flash Loan Window?
Due to Venus's own vulnerability, someone was able to borrow real money using "fake money."

Oil Price Surges, Inflation Rekindled: Will the Fed's Next Move Be a Rate Hike?
Affected by geopolitical conflicts and surging oil prices, renewed inflation concerns have arisen. Currently, the derivatives market is pricing in a 25% probability of a rate hike this year.

The Rise of Crypto Passive Income: How Auto Earn Unlocks the Hidden Value of Idle Crypto
Discover how Auto Earn helps investors turn idle crypto into crypto passive income. Learn why Auto Earn is becoming a popular strategy in the evolving Web3 economy.

Tron Industry Weekly Report: Risk aversion intensifies but Strategy increases BTC holdings, detailed explanation of the Agent payment protocol PAN Network based on x402 and ERC-8004
TRON Industry Weekly Report

March 16 Key Market Intel - A Must-See! | Alpha Morning Report
1. Top News: Crypto Market Initiates Morning Rebound, Bitcoin Surges Past $73K, Ethereum Surpasses $2200
2. Token Unlock: $ARB

Google's biggest acquisition ever, why Wiz?
Cloud War, Extremely Costly.

「1011 Insider Whale」 Agent Garrett Jin: After the Houthi blockade, who will run out of steam first?
Vulnerability Assessment of the Seven Kingdoms.

Vitalik Revisits Ethereum Beacon Chain Architecture, Claude's Off-Peak Transaction Limit Doubled, What Are English-Speaking Communities Discussing Today?
In the past 24 hours, what was the most concerning issue for foreigners?

$90 Million Black Hole: War, Power, and the Crypto-Tragedy of the Middle East
$90 Million Burned, Not Stolen, in Apparent On-Chain Political Cleanup Action.

The price difference exceeds 50%, and the pre-market arbitrage market for cryptocurrency stocks will become a new business in the crypto bear market
In a bear market, what to Buidl? Besides having a counter-cyclical mindset, one must also find the "cracks" in existing services.

How to Trade Crude Oil: Market Volatility Creates New Opportunities for Crypto Traders
Oil prices are back in focus as geopolitical tensions and supply shifts reshape global markets. Learn how crude oil trading works and explore a $30,000 trading campaign on WEEX.

OpenClaw and AI Bots: From AI Trading to BTC Liquidations in the Crypto Gold Rush
AI crypto trading bots like OpenClaw and AI trading apps are reshaping digital markets. From BTC liquidations to crypto bubble charts, automated trading is expanding alongside free crypto airdrops, affiliate programs, LALIGA partnerships, and tokenized gold markets.
Reduced to a hacker's ATM yet standing tall, the theft of Venus reflects the awkwardness of DeFi
After experiencing over $100 million in bad debts in at least four incidents, Venus remains the leading player in the lending sector on the BNB Chain, making it a rare "survivor" in the crypto space.
Under geopolitical conflicts, a policy window has opened. Can Hong Kong seize this wave of RWA opportunities?
The RWA wave sweeps the globe: the scale of on-chain real assets surged fourfold in one year, exceeding 25 billion USD. Hong Kong, backed by the mainland's "going out" policy window, is accelerating the tokenization process of physical assets from entertainment to real estate.
For Web3, this time Cai Wensheng is determined to get his hands dirty
This industry has experienced too many undignified endings; a bull market and a recovery cannot solve the problem. In the end, it will rely on projects that truly succeed and ecosystems that are genuinely established to win a dignified victory for the crypto OGs.
Ethereum Foundation Sets Up a "Dead Man's Switch," Will the Community Buy It?
The Ethereum Foundation's Manifesto Has Torn the Community Apart: Punk Idealism or Disconnect from Reality?
ConversationArthur Hayes: AI Will Spark Financial Crisis, Wait for Central Bank Money Printing Before Buying Bitcoin
「War Means Printing Money, and Printing Money is Good for Bitcoin」
From Power to Chip: How the Average Person Can Participate in the Wealth Opportunities of the AI Era
Everyone is talking about AI applications, but the real money-maker is the person selling the "shovel."