SEC Commissioner Seeks Public Input on National Securities Exchange Trading of Crypto Assets
BlockBeats News, December 18th. On December 17th, SEC Commissioner Hester Peirce issued a statement in conjunction with a new set of FAQs from the Division of Trading and Markets, seeking broad input on issues related to trading of cryptographic assets on National Securities Exchanges (NSEs) and Alternative Trading Systems (ATSs.
The statement focuses on the trading and clearing arrangement for security and "Security-Non-Security Cryptographic Asset" trading pairs. Peirce stated that SEC staff are prepared to work with market participants to facilitate compliant trading pairs on regulated platforms.
Peirce pointed out that the current market is in urgent need of clearer market structure rules to protect investors, maintain market order, and avoid unnecessary regulatory burdens on innovation. She specifically questioned whether Regulation ATS (established in 1998) and Regulation NMS are already lagging behind in the context of cryptographic assets and blockchain technology. The core topics for feedback include:
· How to lower the entry barriers for cryptographic asset securities and trading pair platforms to encourage innovation
· Whether the current Reg NMS and Reg ATS impose disproportionate compliance costs on cryptographic trading
· The need for a dedicated Form ATS for "Crypto ATS" or adjustments to the existing disclosure regime
· Whether disclosure for Crypto ATS should remain non-public or introduce SEC review or a public mechanism
· The need to retain the Form ATS-R quarterly reporting requirement in the context of blockchain and on-chain traceable data
· The need for a compliant method to convert non-dollar assets to dollars
· How to address trade information confidentiality, system risk controls (Rule 15c3-5), and system compliance (Reg SCI) requirements
· How to avoid hindering individual software development, automated trading, or decentralized trading in regulation
Peirce emphasized that these issues will serve as important references for subsequent policy development by the SEC's Cryptographic Working Group. Regulatory agencies are also willing to listen to broader suggestions to overall improve the regulatory framework for NSEs and ATSs. The statement is seen by the market as another signal of relative openness within the SEC for structural reforms in cryptographic asset trading.
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