The Blockchain Association has urged the American Securities and Exchange (SEC) commission to stop applying stock market structures to the cryptography industry. In an official response to the contribution of the SEC Commissioner, Hester Peirce on crypto trading practices, the association has argued that current approaches are not suitable for the unique characteristics of blockchain technology.
The letter from the association, subject on May 2, 2025, focuses mainly on subjects related to trade, compensation, regulations and care in the space of digital assets. The group represents a wide range of cryptographic companies, including Coinbase, Ripple and United Labs.
Blockchain association request for flexible cryptography regulations
According to a Recent thread on xThe Blockchain Association asks the SEC to adopt a more flexible and scalable regulatory approach for cryptographic assets under the new President of the United States Paul Atkins. The existing structure has been designed for traditional stock markets, he says, and it does not take into account the decentralized and real-time nature of the blockchain-based systems.
“The association has urged the Commission to refrain from adopting rules, policies or advice that would limit that can use blockchain technology or for which technology can be used,” he said. They also declared that blockchain facilitates innovations such as real -time regulations, disintermediation and lower transaction costs.
Their letter suggests modernizing the best execution standards by emphasizing the duty of reasonable diligence and an increase in transparency. Instead, they recommend improved disclosure instead of imposing strict rules on the protection of orders as is the case in the actions.
Calls to recognize the risks of transparency and confidentiality of blockchain
The Blockchain association has also noted the open and verifiable data structure of blockchain as a critical tool to monitor regulatory behavior. Rather, regulators should use exchange APIs and data accessible to the public and not collect sensitive personal data, they recommended.
The association, however, noted that there is still a “risk of confidentiality”, citing a play in June 2024 written by the political executive Marisa Tashman Coppel. The group said that personal data collection could increase the user potential without improving surveillance.
In addition, the blockchain association also explained that the transparency of the blockchain allows regulators to follow the activity in real time without interfering with the confidentiality of users. The association believes that this offers a better way for regulatory compliance with traditional methods of holding files.
Approaches to past and present compared
In their submission, the Blockchain Association criticized the leadership of the dry for trying to integrate the cryptographic markets into actions based on models. Under the former SEC president, Gary Gensler, the agency has often dealt with most of the digital assets such as titles and continued coercive measures against several large companies.
The association claims that this approach did not take into account the distinct characteristics of the blockchain.
“The previous administration has tried to model the structure of the cryptographic market in the sense of a stylized view of the stock markets,” said the letter.
The group now supports the management of the current administration. President Paul Atkins, who replaced Gensler, expressed his support for work with the legislators to build a friendly framework for crypto. Since his takeover, Atkins and the former acting president Mark Uyeda have launched a new crypto working group and organized public round tables to collect comments.
Industry developments and regulatory quarters
While the SEC is re -evaluating its strategy, other major events related to cryptography took place. This week, the agency closed its survey on the stablecoin Pyusd Stablecoin of Paypal without action in application. The agency has described its discussions with Paypal as productive.
In parallel, the co-founder of Opple Chris Larsen met the Atkins dry chair. Although the agenda has not been disclosed, analysts think that the current XRP trial may have been discussed. Meanwhile, the dry and the binance have jointly requested more time in their legal proceedings, requesting a break of 60 days.
Through the Atlantic, the Financial Conduct Authority of the United Kingdom also collects comments from the public and industry. The British regulator explores how to define and manage the services related to cryptography under national law, aimed at bringing more clarity to the space of digital assets.
Kelvin Munene Murithi
Kelvin is a distinguished writer with an expertise in crypto and finance, holder of a baccalaureate in actuarial science. Known for its incisive analysis and its insightful content, it has a strong mastery of English and excels in carrying out in-depth research and the dissemination of appropriate updates of the cryptocurrency market.
Warning: The content presented may include the author's personal opinion and is subject to the market state. Do your market studies before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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