Stock Market

Story: SEC Targets Onchain Trading Platforms and Crypto Vault Custody in Regulatory Push

By Steven Anderson

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Hybrid Platforms Face Compliance Pressure. Platforms operating between traditional finance and decentralized systems will probably see the…

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What Comes Next. Details remain scarce. The SEC hasn't published draft rules or a timeline for public comment.

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The SEC wants new rules for onchain trading. Big shift coming.

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Paul Atkins chairs the agency now, and he laid out plans on May 8 to build a framework covering trading systems that run on blockchains, broker-dealer work in crypto, and how…

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Hybrid platforms grew fast over the past few years. Some let users trade tokenized stocks. Others offer derivatives settled onchain.

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Details remain scarce. The SEC hasn't published draft rules or a timeline for public comment. Atkins said the work's in early stages, so don't expect finalized regulations soon.

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More context: Crypto Lenders Pivot to TradFi Models as Institutions Demand Custody Clarity

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The focus on crypto vaults matters a lot. Custody providers hold assets for exchanges, funds, and institutions.

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Onchain trading rules could reshape how decentralized exchanges work. Platforms like Uniswap or Curve don't have traditional order books or intermediaries.

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Broker-dealer rules complicate things further. Traditional broker-dealers register with the SEC, join FINRA, keep detailed records, and follow capital requirements.

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Clearing and settlement also got mentioned. Trades on traditional exchanges settle through clearinghouses like DTCC. Onchain trades settle instantly through smart contracts.

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More context: Crypto Polo Cup Brings Fourth Edition to Palm Beach as Consensus Miami Draws Industry Crowds

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Stakeholders will need to track this closely. The crypto industry's been waiting for clear rules since 2017, and the SEC's moved slowly.

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