SEC Commissioner issues a public consultation on issues related to trading encrypted assets on national securities exchanges

BlockBeats News, December 18 — On December 17, SEC Commissioner Hester Peirce issued a statement along with a set of FAQ released by the Trading and Markets Department, broadly seeking public comment on issues related to trading cryptocurrencies on the National Securities Exchange (NSE) and Alternative Trading Systems (ATS). The statement focuses on the trading and clearing arrangements for securities and “securities—non-securities crypto assets.” Peirce stated that SEC staff are prepared to work with market participants to promote compliant trading pairs on regulated platforms. She pointed out that the current market urgently needs clearer market structure rules to protect investors and maintain market order while avoiding unnecessary regulatory burdens on innovation. She is particularly concerned about whether Regulation ATS (established in 1998) and Regulation NMS are now outdated in the context of cryptocurrencies and blockchain technology. The core issues for public comment include: · How to lower the barriers to entry for securities and trading pairs on crypto platforms and encourage innovation · Whether current Reg NMS and Reg ATS impose disproportionate compliance costs on crypto trading · Whether a dedicated Form ATS should be established for “crypto ATS” or if existing disclosure systems should be adjusted · Whether information disclosure for crypto ATS should remain non-public or if SEC review or public mechanisms should be introduced · Given the traceability of blockchain and on-chain data, whether it is necessary to retain the quarterly reporting requirement of Form ATS-R · Whether a clear compliance method is needed for converting non-USD assets to USD · How to handle confidentiality of trading information, system risk controls (Rule 15c3-5), and system compliance (Reg SCI) · How to prevent regulatory obstacles to individual software development, automation, or decentralized trading methods in regulation Peirce emphasized that these issues will serve as important references for the SEC crypto working group’s future policy development. The regulatory agency is also willing to listen to broader suggestions to improve the overall regulatory framework for NSE and ATS. The statement is seen by the market as another signal of the SEC’s relatively open attitude toward reforming the crypto asset trading market structure.