SEC Chairman: Future Focus on On-chain Financial Markets, Calls on Congress to Pass the "CLARITY Act"

May 9 — Securities and Exchange Commission (SEC) Chair Paul Atkins emphasized in a public speech that the SEC’s future focus will center on the on-chain financial market. The agency’s current regulatory framework struggles to fully adapt to protocols powered by automation and smart contracts. Clear guidance will require rulemaking, including a reassessment of how terms like “trading platforms,” “broker-dealers operating on trading platforms,” and “clearing agencies” apply in on-chain contexts, plus securities and adviser law issues tied to “crypto custodians.” Atkins also voiced support for a limited innovation exemption pathway and called on Congress to pass the Cryptocurrency Market Structure Clarity Act (CLARITY Act) to deliver long-term regulatory certainty via legislation. He warned that overregulation or uncertainty could push innovation overseas, adding the U.S. should lead the global market through understanding and adaptation. On artificial intelligence (AI), Atkins noted that while AI is unprecedented in scale, it is fundamentally a tool for expanding capabilities—like those throughout history. It can boost risk management and broaden investor access, but attention must go to opaque models and systemic risks. The SEC will uphold holding companies accountable for tool usage, and will not mandate specific models or entrench existing technology. Per PolyBeats monitoring, the probability the CLARITY Act takes effect this year stands at 75% on the prediction market Polymarket.