SEC Chair Paul Atkins on May 8 told an AI conference in Washington that the agency is preparing notice-and-comment rulemaking for onchain trading systems, broker-dealer definitions, clearing and settlement, and a category he called “crypto vaults.” Speaking at the Special Competitive Studies Project AI+ Expo, Atkins said existing securities rules were built around traditional intermediaries that no longer map cleanly to protocols where a single piece of code can route liquidity, manage collateral, and settle a trade. He also reiterated SEC support for the CLARITY Act, the market structure bill working through Congress that would split crypto oversight between the SEC and the Commodity Futures Trading Commission. The remarks signal the most concrete rulemaking agenda for digital assets the SEC has laid out under the current administration.
A crypto vault is an onchain software application that lets users deposit digital assets into automated yield-generating strategies without giving custody to a person or company.
- SEC Chair Paul Atkins on May 8 outlined four onchain rulemaking priorities: trading systems, broker-dealer definitions, clearing and settlement, and crypto vaults.
- Atkins said the agency will use notice-and-comment rulemaking and exemptive authority rather than enforcement to draw lines for blockchain protocols.
- He backed the CLARITY Act and called for fresh analysis of the “clearing agency” model when settlement is near-instantaneous and managed algorithmically.
- The speech extends the SEC’s pivot away from the Gensler-era enforcement stance and gives DeFi developers a clearer regulatory path to engage with the agency.
Published: May 9, 2026 16:00 UTC
What Atkins said and where
Atkins delivered the remarks at the AI+ Expo organized by the Special Competitive Studies Project, an event focused on the intersection of artificial intelligence and US economic competitiveness. The full text was posted to SEC.gov on May 8. He framed the speech around what he sees as the inadequacy of existing securities rules for software-defined markets.
“A single protocol can execute a trade, manage collateral, route liquidity, execute trading strategies through vault structures and settle the transaction,” Atkins said. He argued that intermediated frameworks designed for brokers, exchanges, and clearinghouses cannot be applied to that combination by analogy alone, and that the SEC should “clarify how the Commission views the spectrum of models that may implicate our statutes through notice and comment rulemaking, using our exemptive authorities where necessary and prudent.”
The four rulemaking priorities
Atkins identified four areas where the SEC plans to move. Onchain trading platforms come first. The agency wants to define how protocols that match orders or route swaps fit into existing exchange and alternative trading system rules, an open question that has stalled US-based DeFi development for years.
Broker and dealer definitions come next. Atkins said the agency will analyze how those terms apply to software interfaces and front-end developers who never take custody of assets but provide access to onchain markets. Clearing and settlement is the third priority. Atkins said the traditional clearing agency model “requires fresh analysis” when trades settle in seconds and counterparty risk is managed by code rather than a central counterparty.
Crypto vaults are the fourth and most novel category. These onchain applications let users deploy assets into yield-generating strategies, often through automated rebalancing or lending. Atkins said the SEC needs to clarify how the Securities Act applies to vault tokens and the underlying smart contracts, a question that has produced enforcement actions against several DeFi projects in past years without producing a clear standard.
Why this matters for builders and traders
Atkins’ speech is the clearest signal yet that the SEC under Chair Atkins intends to set rules through public process rather than litigation. That distinction matters for protocol teams that have spent years operating in legal gray zones or relocating offshore. Notice-and-comment rulemaking lets developers and trade groups submit input before rules take effect, and exemptive relief gives the agency a tool to permit specific activity without waiting for full rulemaking.
The focus on AI-driven finance also widens the scope. CoinDesk reported that Atkins linked the rise of automated trading agents and AI-managed strategies with growing demand for blockchain settlement, suggesting the SEC sees onchain rails as infrastructure for AI in finance, not just a separate crypto market. That framing matches the policy push at AWS Bedrock and other agent payment platforms launched this quarter.
The CLARITY Act backdrop
Atkins’ rulemaking agenda runs in parallel with the CLARITY Act, which the Senate is scheduled to mark up on May 11. The bill would codify the split between SEC oversight of digital asset securities and CFTC oversight of digital commodities, a line the agencies have applied inconsistently for years. CLARITY’s Senate markup follows a House compromise on stablecoin yield rewards reached last week. Atkins said the agency will move on areas it can clarify under existing authority while supporting Congressional action where new statutes are needed.
What comes next
The SEC has not published a formal rulemaking calendar. Industry attorneys expect concept releases or proposed rules in the second half of 2026, beginning with the broker-dealer definition or onchain trading systems, where prior staff guidance gives the agency a starting point. Crypto vault rulemaking is likely to come later because it involves novel interpretations of the Securities Act. For protocol teams, the near-term move is to engage. Atkins invited public comment and said exemptive applications would be considered.
Frequently asked questions
What is a crypto vault?
A crypto vault is an onchain software application that automatically deploys deposited digital assets into yield-generating strategies, such as lending, liquidity provision, or staking. Users typically receive a vault token representing their share of the strategy and accrue yield without manual rebalancing.
How does notice-and-comment rulemaking differ from enforcement?
Notice-and-comment rulemaking publishes a proposed rule for public input, considers responses, and then issues a final rule that applies prospectively. Enforcement applies existing law to specific conduct after the fact. Atkins is signaling the SEC will set crypto rules in advance through the first method rather than through individual cases.
Does this change anything for DeFi today?
Not immediately. Atkins outlined intent, not final rules. Existing securities laws still apply, and pending enforcement matters will not be paused. The shift will show up in proposed rules and exemptive orders later in 2026, with full implementation likely stretching into 2027.
