TL;DR
- Paul Atkins and Hester Peirce back tokenized securities clarity at ETHDenver.
- Atkins emphasizes transparency for informed buy, sell, or hold decisions.
- Peirce confirms SEC technical assistance on market structure legislation.
Paul Atkins, chair of the US Securities and Exchange Commission (SEC), and Hester Peirce, head of the agency’s crypto task force, stated Wednesday they would support efforts to clarify how “tokenized securities interact with existing regulation” to better position industry developers.
The commissioners spoke at the ETHDenver conference addressing concerns about cryptocurrency price volatility and the agency’s plans for digital asset regulation amid potential market structure legislation in Congress.
In response to recent price declines — Bitcoin fell more than 28% and Ethereum dropped over 40% in the previous 30 days — Atkins described the regulatory role as ensuring “the rules governing the asset classes we regulate enable people to have the information they need to express their market sentiments through decisions about whether to buy, sell, or hold the assets at issue.“
Neither commissioner directly addressed efforts to pass market structure legislation in Congress, though Peirce mentioned the SEC had “provided technical assistance” on the matter. A bill moving through the US Senate, called the CLARITY Act when it passed the House of Representatives in July, could shift much of the SEC’s authority over digital assets to the Commodity Futures Trading Commission (CFTC).
The potential transfer of regulatory authority raises questions about implementation given current staffing at the CFTC. ETHDenver, happening this week in Colorado, is one of the largest cryptocurrency events in the United States, bringing together developers and industry leaders for discussions on blockchain development and regulatory frameworks.
CFTC Operates With Single Commissioner Despite Senate-Confirmed Chair as Lawmakers Consider Implementation Requirements
Michael Selig, confirmed as commissioner and chair of the CFTC in December, remains the sole leader at an agency designed for five commission members. The understaffing creates operational constraints as the agency potentially assumes expanded jurisdiction over digital assets under proposed legislation.
As the US Senate considers provisions within the market structure bill, some lawmakers pushed for language requiring at least four commissioners confirmed before the law can take effect. The requirement addresses concerns about transferring substantial regulatory authority to an agency operating at 20% of intended leadership capacity.
