jakiro
Author: Zhang Feng
At the fourth Investor Advisory Committee meeting in 2025, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins delivered a highly anticipated speech.This speech is not only his summary speech for the whole year, but also a systematic explanation of the future development path of the U.S. capital market.
Faced with the impact of multiple technological waves such as blockchain technology, asset tokenization, and artificial intelligence, Atkins clarified the SEC’s regulatory mission and principles, emphasizing that it is necessary to “ensure that public companies become an attractive choice for more enterprises” and to pave a compliance path for the on-chain transformation of the financial market, while avoiding an “overly prescriptive” regulatory approach to emerging technologies.We focus on the nine core points in his speech to reveal the SEC’s regulatory thinking and strategic direction in the new era.
1.SECThe chairman’s top priority: Reshaping the appeal of public companies
Atkins began his speech by emphasizing that one of his core tasks is “Ensure public companies become an attractive option for more businesses“.This stance reflects the SEC’s deep concern about the current structure of the U.S. capital market and its global competitiveness.As the main body of the capital market, public companies’ vitality and health directly affect resource allocation efficiency, investor confidence and national financial competitiveness.
In recent years, with the diversification and convenience of financing channels in the private market, more and more companies have chosen to postpone or give up listing, and the number of public companies has shown a shrinking trend.To this end, the SEC needs to re-energize companies’ willingness to go public and consolidate the global leadership of the U.S. public market by optimizing the regulatory framework, reducing compliance burdens, and improving market transparency and predictability.
2. Modernization of rules: Promote the evolution of the capital market to “on-chain operation”
Faced with the rapid development of distributed ledger technology (DLT) and asset tokenization, Atkins clearly stated,SECIt is necessary to promote the modernization of rules so that the market can achieve “on-chain operation”.The traditional securities issuance, trading and settlement system relies on multi-layer intermediaries. Although it reduces information asymmetry and operational risks to a certain extent, it also brings problems such as low efficiency, high costs and insufficient transparency.
Public blockchain technology is expected to fundamentally reconstruct this system and realize the entire process of securities issuance, holding, trading and services on the chain.The mission of the SEC is not to hinder this process, but to provide space for compliance development by revising outdated rules and ensure that the United States takes the lead in building a global capital market on the chain.
3. Public blockchain and tokenization: Reconstructing the relationship between issuers and investors
Atkins pointed out,Public blockchain and tokenization can not only simplify the transaction process, but also “simplify the entire issuer-investor relationship.”.Under the traditional securities holding system, shareholder identification, voting rights exercise, dividend distribution, etc. all need to be completed through multiple intermediaries such as custodians and brokers. The process is complex and error-prone.
Tokenized securities can realize automated governance functions through smart contracts, such as proxy voting, real-time dividends, shareholder communications, etc., greatly improving efficiency and transparency.This technology-driven reshaping of direct relationships is a core change that the SEC must fully consider when formulating new regulations.
4. Three main modes of tokenization
In his speech, Atkins systematically sorted out the three tokenization models emerging in the current market, reflecting the SEC’s high attention to industry practices:
Direct on-chain issuance model: Enterprises directly issue equity tokens on public distributed ledgers. As programmable assets, these tokens can be embedded with governance functions such as compliance conditions and voting rights, allowing investors to hold them directly and minimize intermediary links.
On-chain rights mapping model: A third-party institution maps the ownership of traditional stocks into on-chain equity certificates, and investors indirectly enjoy the economic and governance rights of the underlying assets by holding on-chain tokens.This model retains the traditional legal structure to a certain extent while introducing on-chain liquidity.
Synthetic product model: Issuing synthetic tokenized products that reflect the stock price performance of listed companies. Such products are mostly issued in overseas markets, reflecting the strong demand from global investors for on-chain financial infrastructure.
The SEC needs to design differentiated regulatory plans for different models to not only encourage innovation but also prevent risks.
5. PredecessorSECMistakes: Overexpansion and Stifling Innovation
Atkins criticized the previous committee’s wrong approach in regulating on-chain markets without naming them, that is, by trying to expand the legal definitions of “transactions” and “exchanges” to include on-chain protocols and even basic communication protocols into the traditional exchange regulatory framework.This approach “lacks restrictive principles” and not only exceeds the legislative authorization of Congress, but also creates regulatory uncertainty and inhibits technological innovation and market development.
Atkins emphasized,SECNew business formats should not be forced into the old framework through “brute force cracking”, but regulatory logic should be constructed to match it based on the nature of technology and functional reality.
6. Proper use of immunity: providing transition space for innovation
The SEC is granted broad immunity under the Securities Exchange Act of 1934.Atkins argued that these powers should be used “responsibly,” byEstablish an exemption framework that is “restricted, time-limited, transparent and based on strong investor protection” to provide a safe experimental space for on-chain financial innovation.
This “regulatory sandbox” thinking not only allows the market to explore new models in a controlled environment, but also buys time for the SEC to accumulate regulatory experience and formulate long-term rules.Exemption is not laissez-faire, but a staged and conditional tolerance to promote the orderly evolution of the market.
7. Supervision of decentralized protocols: avoid “square pegs in round holes”
Atkins explicitly opposes regulating decentralized protocols in the same way that centralized intermediaries are regulated.He believes that a truly decentralized protocol relies on code rules and community governance to operate, and has the characteristics of transparency, censorship resistance, and high flexibility.If regulatory requirements are imposed on traditional broker-dealers, not only will it be impossible to achieve effective supervision, but it will stifle their innovative vitality.
However, this does not mean that on-chain finance can become a “lawless place”.The SEC must distinguish between “true decentralized finance” and “centralized entities dressed only in the guise of a chain” to prevent the latter from using regulatory arbitrage to harm the rights and interests of investors.Supervision should be based on “functional realities” rather than organizational representations.
8. Basic principles of on-chain capital market supervision
Atkins outlines three basic principles for on-chain capital market regulation:
Technology neutrality and functional supervision: Rules should be based on the substance of economic activity rather than the labeling of technology.
Innovation inclusive and risk controllable: While encouraging the application of technology, it is necessary to ensure that transparency, accountability and investor protection are not weakened by technological changes.
Global synergy and local responsibility: The United States should actively lead international regulatory dialogue, prevent fragmentation and arbitrage, and at the same time adhere to high standards in its own market.
These principles jointly point to one goal: to enable the United States to continue to maintain its position as “the most dynamic, transparent and trustworthy market in the world” in the on-chain era.
9. Listed companiesAIInformation Disclosure: Adhere to principle orientation and oppose list-based supervision
When talking about the impact of artificial intelligence on enterprises, Atkins demonstrated a clear “principled regulation” stance.He opposes the introduction of specific disclosure lists for each new technology.It is advocated to rely on the existing information disclosure framework based on the principle of materiality.Companies should independently determine whether AI has a significant impact on their business model, financial status, and risk composition, and provide valuable information to investors accordingly.This flexible regulatory approach not only avoids the instability caused by frequent revisions of rules, but also gives companies sufficient disclosure flexibility, reflecting the SEC’s trust in the market’s self-regulatory ability.
Conclusion: Return to mission and lead the future
Atkins’ entire speech sent a clear signal: the SEC is trying to find a new balance between protecting investors, maintaining market integrity and encouraging technological innovation.The core idea is to “return to the mission” – not to respond to changes by expanding powers, but to make regulation better serve market development and public interests by optimizing rules, clarifying boundaries, and making good use of tools.
Today, with the dual waves of blockchain and artificial intelligence, this kind of “Mission-driven, principle-first, inclusive and innovative“The regulatory philosophy may be the key to maintaining the long-term competitiveness of the U.S. capital market.The role of the SEC is not a boulder blocking the technological torrent, but a river bed that guides the flow of compliance—not only preventing flooding and disasters, but also helping to nourish the ecology.
