SEC Chair Atkins Proposes New Rules for Onchain Markets and AI Finance

On May 8, 2026, SEC Chair Paul Atkins indicated that the U.S. Securities and Exchange Commission (SEC) is considering developing new rules regarding onchain trading systems, automated financial applications, and blockchain settlement infrastructure. He noted that the increasing intersection of blockchain technology and artificial intelligence is prompting the need for updated regulations, as many existing securities rules do not adequately encompass the unique functionalities of blockchain protocols.

Atkins emphasized that the current regulations, which were designed with traditional financial intermediaries such as brokers and exchanges in mind, do not fit well with modern blockchain systems that integrate various market functions into single software solutions. "A single protocol can execute a trade, manage collateral, route liquidity, execute trading strategies through vault structures and settle the transaction," he stated, highlighting the hybrid nature of contemporary financial models.

This announcement marks a notable shift from the more enforcement-driven approach of Atkins's predecessor, Gary Gensler, who focused primarily on centralized exchanges. Atkins aims for formal rulemaking to clarify how the SEC views these blurred lines between traditional finance and decentralized models, rather than relying solely on enforcement actions.

Additionally, Atkins spoke to the necessity of adapting regulatory frameworks to rapidly evolving technologies, particularly AI, which he believes will play an increasingly significant role in financial decision-making at machine speed. He reiterated the need for a clear regulatory environment that can accommodate the broad applications of these emerging technologies.

Atkins also showed support for legislative efforts such as the CLARITY Act, which seeks to establish a shared regulatory framework for digital assets between the SEC and the Commodity Futures Trading Commission (CFTC). These steps signal a broader recognition of the growing importance of blockchain and AI in modern finance.