The SEC is considering establishing new regulations for on-chain markets, focusing on the regulatory framework for software applications.

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Odaily Planet Daily News reports that U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins stated that regulatory agencies are considering establishing new rules for on-chain financial markets and related software applications.

Atkins pointed out that current DeFi and other software protocols are difficult to categorize as exchanges, brokers, or clearinghouses within traditional regulatory frameworks, as a single protocol often performs multiple functions such as trade execution, collateral management, liquidity routing, and settlement.

His statement is seen as an indication that the SEC’s attitude towards the cryptocurrency industry is becoming more open and friendlier compared to former Chair Gary Gensler. Meanwhile, the SEC is also exploring innovative exemption mechanisms for tokenized securities and advancing efforts to clarify the classification system for digital assets.

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