U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins signaled that “crypto vaults” could become one of the next major areas of regulatory focus as the agency reevaluates how existing securities laws apply to onchain financial markets.
Speaking at the Special Competitive Studies Project AI+ Expo on Friday, Atkins said the SEC is considering new rulemaking and guidance around blockchain-based financial infrastructure, including onchain trading systems, automated clearing mechanisms, and yield-generating crypto applications. He said software-based financial protocols increasingly combine functions traditionally handled by separate regulated entities, creating new questions for securities regulation.
Moreover, Atkins once again called for the swift passage of the CLARITY Act. He said, “I continue to echo my call for Congress to send the CLARITY Act to President Trump’s desk. Because, while I intend to future-proof our efforts through notice and comment rulemaking, there is no more powerful way to future-proof than enshrining sound statutory language in law.”
Atkins points to “crypto vaults” as emerging regulatory issue
Atkins specifically highlighted so-called “crypto vaults” as an area where the SEC may need to provide clearer guidance. According to Atkins, crypto vaults are onchain software applications that allow users to passively deploy digital assets into yield-generating strategies across decentralized finance markets.
He said the SEC should clarify how federal securities laws, including the Securities Act and Advisers Act, apply to these products. “Crypto vaults are onchain software applications that are often designed to allow users to earn yield passively,” Atkins said during the speech.
The remarks mark one of the clearest signals yet that the SEC is examining how automated DeFi yield products fit within existing regulatory frameworks.
SEC reviewing rules for onchain trading systems
Beyond crypto vaults, Atkins said the SEC is also reviewing how onchain exchanges, brokers, dealers, and clearing systems should operate under U.S. securities laws. He noted that blockchain protocols can now execute trades, manage collateral, route liquidity, settle transactions, and automate trading strategies within a single system. This structure, Atkins argued, does not always fit neatly into the SEC’s existing categories for exchanges, brokers, clearing agencies, and transfer agents.
The SEC chair said the agency may consider a “limited innovation pathway” in the near future while also exploring broader rulemaking around the definition of an exchange in onchain markets. He added that the Commission could revisit how broker-dealer and clearing agency rules apply when settlement occurs nearly instantly, and counterparty risk is managed algorithmically.
Shift toward tailored crypto rules
Throughout the speech, Atkins argued that regulators should avoid forcing emerging technologies into rigid legacy frameworks before markets fully mature. He compared the current moment in crypto and AI to the SEC’s approach to electronic trading systems in the late 1990s, when the agency introduced Regulation ATS to create a separate framework for alternative trading systems.
Atkins said the SEC should pursue a similar approach for blockchain markets by using guidance, exemptions, and notice-and-comment rulemaking where necessary. He also referenced recent SEC staff statements, FAQs, and no-action letters issued during the current administration to reduce legal uncertainty around blockchain-related activity.
Push for onchain market clarity
Atkins emphasized that the SEC’s broader objective is to accommodate financial markets moving onchain while maintaining investor protections. He warned against driving crypto innovation offshore through regulatory uncertainty, referencing the collapse of FTX as an example of risks tied to overseas market activity.
The SEC chair also renewed his support for the proposed CLARITY Act, calling on Congress to establish clearer statutory frameworks for digital asset markets. According to Atkins, regulatory coordination across agencies will also be necessary because many blockchain-based financial systems operate across multiple legal and operational categories simultaneously.
Also Read: Stablecoins, RWAs, ETFs Fuel Crypto’s April Market Rebound: Binance
