CoinVoice has recently learned that SEC Commissioner Hester Peirce issued a statement on December 17, in conjunction with the latest set of FAQs released by the Division of Trading and Markets, seeking broad public comment on issues related to trading crypto assets on the National Securities Exchange (NSE) and Alternative Trading Systems (ATS).
The statement focuses on the trading and clearing arrangements for crypto asset securities and 'security – non-security crypto asset' trading pairs. Peirce stated that SEC staff are prepared to work with market participants to promote compliant trading of trading pairs on regulated platforms.
Peirce 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 She particularly focuses on whether Regulation ATS (introduced in 1998) and Regulation NMS have become outdated in the context of cryptocurrency assets and blockchain technology. The core issues raised for consultation include:
How to lower the entry threshold for cryptocurrency asset securities and trading platforms, encouraging innovation? Does the current Reg NMS and Reg ATS impose disproportionate compliance costs on crypto trading? Is there a need to establish a dedicated Form ATS for 'crypto ATS' or to adjust existing disclosure systems? Should the information disclosure of crypto ATS continue to be non-public, or should it introduce SEC review or public mechanisms? In the context of blockchain and traceable on-chain data, is it necessary to retain the Form ATS-R quarterly reporting requirement? Is there a need to clarify the compliance methods for converting non-USD assets to USD? How to handle confidentiality of trading information, system risk control (Rule 15c3-5), and system compliance (Reg SCI) requirements? How to avoid hindering individual developers from creating software and using automated or decentralized methods for trading in regulation?
Peirce emphasized that these issues will serve as an important reference for the SEC's subsequent policy formulation regarding the crypto working group. The regulatory agency is also willing to listen to broader suggestions to overall improve the regulatory framework of NSE and ATS. This statement is viewed by the market as another signal of the SEC's relatively open attitude towards reforms in the structure of the cryptocurrency trading market. [Original link]
