SEC Invites Industry Input on Modernizing Crypto Trading Frameworks

U.S. SEC Commissioner Hester Peirce has officially called for public feedback and released a set of FAQs aimed at refining how crypto assets are traded on National Securities Exchanges and Alternative Trading Systems (ATS). This initiative seeks to bridge the gap between existing financial regulations and the unique technological demands of the digital asset space.

Key Focus Areas

• Regulatory Reform: Commissioner Peirce is questioning whether current frameworks, such as Regulation ATS and Regulation NMS, are outdated or impose prohibitive compliance costs on modern crypto platforms.
• Fostering Innovation: The goal is to lower entry barriers for crypto-based securities, potentially allowing for the seamless trading of security and non-security pairs within a regulated environment.
• Operational Efficiency: The proposal explores the creation of a specialized Form ATS tailored for crypto, which could simplify the registration process, reduce overhead, and increase market transparency.

Industry Impact and Outlook

While the move is seen as a positive step toward aligning policy with technological progress, the crypto industry has maintained a cautious stance. Stakeholders are currently evaluating how these potential rules might reshape day-to-day trading practices and operational costs.

Peirce emphasized that public participation is vital for creating a balanced framework, noting that "public input on crypto and blockchain issues is crucial for shaping our ongoing policy efforts." As of now, major industry leaders have yet to release formal responses to the Commissioner’s request.

December 2025, Cryptoniteuae