SEC: “Clarity for crypto is just the beginning of a long journey.”

Chairman Paul S. Atkins of the U.S. Securities and Exchange Commission (SEC) recently made a noteworthy statement: recent efforts to clarify the legal framework for crypto are not the “end point,” but merely the “end of the beginning phase.”

This statement represents a major shift in the US regulatory approach to the digital asset market – but also underscores that there is still a long way to go.

A major step forward: The SEC is beginning to bring clarity to crypto.

Over the past period, the SEC has issued a series of important guidelines to determine how securities laws apply to crypto. This is XEM as the clearest effort to date to address the core question: which Token are securities and which are not.

Specifically, the SEC has developed a classification system, Chia crypto into several groups such as:

• Digital commodities
• Stablecoin
• Digital tools
• Collectibles
• Digital securities

In this model, most asset classes such as commodities, tools, and collectibles are not considered securities, thereby significantly reducing regulatory pressure on the market.

This is a crucial change, especially after years of criticism of the SEC for “regulation by enforcement”—that is, governing through litigation rather than providing clear guidance.

“End of the beginning”: What does it really mean?

In his speech at the Digital Asset Summit, Atkins emphasized:

This is not the end. It's not even the "beginning of the end." But perhaps, this is the end of the beginning.

This statement carries many implications:

1. The SEC has completed the first step: clarifying the current law.

The SEC can currently only interpret and apply existing securities laws. Providing guidance to help the market understand the legal boundaries is a significant step forward.

2. But there is still no complete legal framework.

Atkins acknowledges that the current level of clarity is necessary but not sufficient.

The reason is:

• Current laws are not designed for crypto.
• Many new models such as DeFi, Staking, and Tokenize are still not clearly defined.
• Some assets have a "hybrid" nature that makes them difficult to classify.

The role of the U.S. Congress: The missing piece

One important point to emphasize is:

Only the U.S. Congress can create a sustainable legal framework for crypto.

The SEC may:

• Interpretation of the law
• Provide instructions
• Adjust the scope of management

But it's impossible:

• Rewrite the law
• Creating an entirely new market structure.

Therefore, the new bills are expected to:

• Clearly define the roles between the SEC and the CFTC.
• Establishing separate rules for digital assets.
• Reducing legal conflicts in the long term.

Impact on the crypto market

These changes could have many significant impacts:

Positive

• Reducing legal risks for crypto projects.
• Attracting institutional Capital
• Encouraging innovation in the US

Negative / Risk

• Some areas are still "grey".
• The possibility of change if political policies reverse.
• Investors still have to assess the risks themselves.

Atkins' speech marked a significant moment:

Crypto in the US has moved past the legal turmoil phase.
But it has not yet entered a completely stable phase.

In other words:

We're no longer at the starting line, but the race has only just begun.

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The article "US nears complete crypto legal framework, what does the SEC say?" first appeared on CoinMoi .