SEC Weighs Crypto Rule Changes for Onchain Markets and AI Finance

The U.S. Securities and Exchange Commission (SEC) is exploring possible regulatory changes for blockchain-based financial systems and AI-powered financial applications as crypto firms continue moving trading and settlement activities onchain. SEC Chair Paul Atkins announced Friday at the AI+ Expo in Washington that the agency is reviewing how existing securities laws apply to evolving digital asset infrastructure.

Atkins explained that current SEC regulations were built around traditional financial intermediaries such as brokers, exchanges and clearinghouses. However, blockchain technology now allows many of these functions to operate within a single decentralized protocol. According to Atkins, modern onchain systems can execute trades, manage collateral, route liquidity and settle transactions automatically through software-driven platforms.

The SEC chair emphasized that many blockchain financial systems combine elements of both decentralized finance (DeFi) and traditional finance. Because of this hybrid structure, the agency is considering formal rulemaking and possible exemptions to clarify how securities laws should apply to digital asset markets and automated financial applications.

Atkins’ comments mark another major shift from the SEC’s previous enforcement-focused crypto strategy under former Chair Gary Gensler. While Gensler pursued multiple lawsuits against crypto exchanges over alleged securities violations, the current administration under President Donald Trump has taken a more flexible approach. The SEC has recently issued crypto guidance, no-action relief and public statements designed to reduce uncertainty for blockchain and digital asset companies.

The SEC chair also highlighted the growing role of artificial intelligence in financial markets. He said AI agents are expected to participate in trading and financial decision-making at machine speed, while blockchain networks enable instant value transfers.

Atkins reiterated support for crypto market structure legislation, including the proposed CLARITY Act, which would establish a shared regulatory framework between the SEC and the Commodity Futures Trading Commission (CFTC) for digital assets.