U.S. SEC Commissioner solicits opinions on issues related to the trading of crypto assets on national securities exchanges and alternative trading systems

PANews reported on December 18 that U.S. SEC Commissioner Hester Peirce issued a statement in conjunction with the latest set of Frequently Asked Questions (FAQs) released by the Department of Trading and Markets to solicit opinions from the market on matters related to the trading of crypto assets on the National Stock Exchange (NSE) and Alternative Trading Systems (ATS). The statement focuses on the trading and clearing arrangements for crypto-asset securities and “security-non-security crypto-asset” trading pairs. Peirce said SEC staff are ready to work with market participants to facilitate compliant trading pairs on regulated platforms.

Peirce pointed out that the current market urgently needs clearer market structure rules to protect investors and maintain market order while avoiding unnecessary regulatory burdens on innovation. She is particularly concerned about whether Regulation ATS (introduced in 1998) and Regulation NMS have lagged behind in the context of crypto assets and blockchain technology. The core contents of the solicitation of opinions include: how to lower the entry threshold for crypto asset securities and trading pairs platforms and encourage innovation; whether the current Reg NMS and Reg ATS pose disproportionate compliance costs for crypto transactions; whether it is necessary to set up a special Form ATS for "crypto ATS" or adjust the existing disclosure system; whether the disclosure of crypto ATS information should continue to be non-public or introduce an SEC review or public mechanism; whether it is necessary to retain the Form in the context of blockchain and on-chain data traceability ATS-R quarterly reporting requirements; whether it is necessary to clarify the compliance method for converting non-US dollar assets into US dollars; how to handle requirements such as transaction information confidentiality, system risk control (Rule 15c3-5) and system compliance (Reg SCI); how to avoid hindering individuals from developing software and using automated or decentralized transactions in supervision. Peirce emphasized that these issues will serve as an important reference for the subsequent policy formulation of the SEC Encryption Working Group, and regulatory agencies are also willing to listen to broader suggestions to improve the overall regulatory framework of NSE and ATS.

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