US SEC declares 'complete overhaul' to reverse virtual asset stance..."Ending regulatory deviation"

▲ US Securities and Exchange Commission (SEC), Bitcoin (BTC), XRP (XRP), Cryptocurrency Regulation/AI Generated Image

The U.S. Securities and Exchange Commission (SEC) has announced a complete overhaul of its policy stance from the past four years, shifting towards supporting financial innovation, including virtual assets. The Commission made it clear that it aims to establish clear guidelines to elevate the U.S. into a global hub for virtual assets.

On April 17, local time, SEC Commissioner Paul Atkins unveiled future policy directions in a video on the Commission's official YouTube channel, alongside Commissioners Mark Uyeda and Hester Peirce. Commissioner Atkins pointed out that over the past four years, the Commission had deviated from its fundamental role of promoting capital formation and excessively intervened in corporate management. He stated, "The mission of the Securities and Exchange Commission is to maintain entrepreneurship," adding, "The past period was a complete deviation."

Commissioner Uyeda also raised concerns about the shift in the Commission's role. Commissioner Uyeda criticized that "the Commission deviated from its decades-long role as a disclosure-focused agency and concentrated on detailed management." He further emphasized the necessity of redefining policy directions, citing the Commission's influence on environmental and social issues without clear legislative grounds from Congress. He also stated, "The corporate fundraising environment must be improved through a balance between public and private markets."

Policy changes were also foreshadowed in the virtual asset sector. Commissioner Peirce emphasized that virtual assets are a technology enabling efficient value transfer without intermediaries, and explained the progress of Project Crypto. Commissioner Peirce stated, "We will automate regulatory requirements using smart contracts and support innovators to operate in a predictable legal environment." She also assessed Bitcoin (BTC) and XRP as key elements for maintaining the competitiveness of the U.S. capital market.

The Commission will also strengthen cooperation with relevant agencies. It plans to establish a cooperative system with the U.S. Commodity Futures Trading Commission, led by Chairman Michael Selig, to reduce regulatory overlap and enhance market management efficiency. Both agencies intend to clearly delineate their authorities to create a comprehensive management system covering spot and derivatives markets.

The approach to investor protection will also change. Commissioner Peirce emphasized the importance of financial education, stating that the public's asset management capabilities must be strengthened to counter increasingly complex fraud schemes. The Commission plans to introduce systematic financial education from the elementary school level to lay the groundwork for future generations to protect their own assets.

Through this policy shift, the Commission aims to remove elements that hindered innovation and focus on restoring market dynamism. The strategy is to establish a regulatory framework that responds to the new financial environment, including virtual assets, thereby strengthening global competitiveness.

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