The Blockchain Association has urged the U.S. Securities and Exchange Commission (SEC) to cease making use of fairness market constructions to the crypto business. In a proper response to SEC Commissioner Hester Peirce’s request for enter on crypto buying and selling practices, the affiliation argued that present approaches aren’t appropriate for the distinctive options of blockchain expertise.
The affiliation’s letter, submitted on May 2, 2025, focuses totally on matters associated to buying and selling, clearing, settlement, and custody within the digital asset area. The group represents a variety of crypto companies, together with Coinbase, Ripple, and Uniswap Labs.
Blockchain Association Request for Flexible Crypto Regulation
According to a recent thread on X, the Blockchain Association is asking on the SEC to undertake a extra versatile and evolving regulatory strategy for crypto belongings below the new US SEC chair Paul Atkins. The current construction was designed for the standard fairness markets, it says, and it doesn’t issue the decentralized and actual time nature of blockchain based mostly techniques.
“The Association urged the Commission to refrain from adopting rules, policies, or guidance that would limit who can use blockchain technology or what the technology can be used for,” it mentioned. They additionally mentioned that blockchain facilitates improvements like actual time settlement, disintermediation and decrease transaction prices.
Their letter suggests modernizing greatest execution requirements by putting emphasis on the responsibility of affordable diligence and will increase in transparency. They as a substitute advocate enhanced disclosure as a substitute of imposing strict guidelines ordering safety as is the case in equities.
Calls to Recognize Blockchain Transparency and Privacy Risks
The Blockchain Association additionally made word of blockchain’s open, verifiable information construction as a essential device to monitoring regulatory conduct. Regulators ought to as a substitute use trade APIs and information which can be publicly accessible and never collect delicate private information, they beneficial.
The affiliation, nonetheless, did word that there’s nonetheless a ‘privacy risk,’ citing a June 2024 piece penned by coverage government Marisa Tashman Coppel. The group mentioned that accumulating an excessive amount of private information might improve the potential for use towards customers with out enhancing surveillance.
In addition, the Blockchain Association additional defined that the blockchain’s transparency permits regulators to monitor exercise in real-time with out interfering with consumer privateness. The affiliation believes this presents a greater path for regulatory compliance in contrast to conventional recordkeeping strategies.
Past and Present US SEC Approaches Compared
In their submission, the Blockchain Association criticized previous SEC management for trying to match crypto markets into equity-based fashions. Under former SEC Chair Gary Gensler, the company usually handled most digital belongings as securities and pursued enforcement actions towards a number of main companies.
The affiliation claims this strategy failed to account for blockchain’s distinct options.
“The previous administration tried to mold crypto market structure along the lines of a stylized view of the equity markets,” the letter mentioned.
The group now helps the path of the present administration. Chair Paul Atkins, who changed Gensler, has expressed help for working with lawmakers to construct a crypto-friendly framework. Since taking on, Atkins and former performing Chair Mark Uyeda have launched a brand new crypto job power and hosted public roundtables to collect suggestions.
Industry Developments and Regulatory Shifts
As the SEC reassesses its technique, different main crypto-related occasions have unfolded. This week, the company closed its investigation into PayPal’s PYUSD stablecoin with out enforcement motion. The company described its discussions with PayPal as productive.
In parallel, Ripple co-founder Chris Larsen met with SEC Chair Atkins. Although the agenda was not disclosed, analysts imagine the continued XRP lawsuit might have been mentioned. Meanwhile, the SEC and Binance have collectively requested extra time of their authorized proceedings, asking for a 60-day pause.
Across the Atlantic, the UK’s Financial Conduct Authority can also be gathering suggestions from the general public and the business. The UK regulator is exploring how to outline and handle crypto-related providers below nationwide regulation, aiming to deliver extra readability to the digital asset area.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Known for his incisive evaluation and insightful content material, he possesses a robust command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
Disclaimer: The introduced content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability for your private monetary loss.
