Looking ahead, he noted that while the SEC may consider a limited \u201cinnovation pathway\u201d soon, he also argued the agency should think about what a future-proof framework could look like.\u00a0<\/p>\n
In his view, that framework would take the form of notice-and-comment rulemaking, and it would specifically address how the SEC\u2019s \u201cexchange\u201d definition applies to on-chain trading systems.<\/p>\n
The SEC chair also pointed to the need to clarify how the broker and dealer framework would apply to these activities. He said the Commission should examine issues raised in a recent staff statement on software interfaces, and he suggested that this policy initiative could involve notice-and-comment exemptive rulemaking.<\/p>\n
A third area of emphasis was the definition of a \u201cclearing agency\u201d as it applies to on-chain clearing and settlement. Atkins said rulemaking may be necessary to confirm which general-purpose activities fall outside that definition.<\/p>\n
Finally, Atkins called for additional clarity surrounding what are commonly referred to as \u201ccrypto vaults.\u201d He described crypto vaults as on-chain software applications that allow users to earn yield passively by deploying their assets into yield-generating opportunities on-chain.\u00a0<\/p>\n
He said the Commission should address the relevant Securities Act and Advisers Act touch-points as it considers these policy initiatives.<\/p>\n
Why Hyperliquid Policy Center Finds It Promising<\/h2>\n
Atkins concluded by saying the SEC will keep moving forward to accommodate markets moving on-chain. At the same time, he reiterated his call for Congress to send the CLARITY Act to President Trump\u2019s desk.\u00a0<\/p>\n
He argued that while the SEC intends to \u201cfuture-proof\u201d its efforts through notice-and-comment rulemaking, there is \u201cno more powerful\u201d future-proofing mechanism than enshrining well-designed statutory language in law.<\/p>\n
The Hyperliquid Policy Center, led by Jake Chervinsky, said it was encouraged by Atkins\u2019 approach of mapping on-chain clearing and settlement systems to existing legal frameworks \u201con their own terms,\u201d rather than forcing them into legacy categories built for legacy architecture.\u00a0<\/p>\n