U.S. SEC Begins Soliciting Input on Virtual Asset Trading Regulations…Reexamining ATS and NMS

The U.S. Securities and Exchange Commission (SEC) has begun soliciting market input on the overall regulatory framework for virtual asset trading. The aim is to assess whether existing securities market regulations are imposing an excessive burden on the virtual asset market.

On the 18th (local time), according to a Coincu report, SEC Commissioner Hester M. Peirce said in a statement that the SEC is requesting comments on how trading regulations should be applied on national securities exchanges and Alternative Trading Systems (ATS), focusing on cases where virtual assets qualify as securities. The SEC also released related FAQs.

Commissioner Peirce said there is a need to reexamine whether Regulation ATS and Regulation NMS are suitable for the current virtual asset market structure. She particularly focused on whether unnecessarily high regulatory costs and entry barriers are arising as virtual asset trading platforms handle both securities-like and non-securities assets.

The SEC is seeking regulatory pathways that can more flexibly accommodate trading in virtual asset securities while maintaining investor protection and market order. Commissioner Peirce also mentioned the possible introduction of a dedicated Form ATS, which she expects could reduce compliance burdens for virtual asset trading platforms.

Commissioner Peirce said, "Public solicitation of comments is essential in designing policies related to virtual assets and blockchain," and added, "the practical experiences and proposals of market participants will play an important role in determining future regulatory directions." So far, no official responses have been issued by major virtual asset companies or institutions.

Meanwhile, market volatility appears to be increasing alongside regulatory discussions. According to CoinMarketCap, as of 00:43 (UTC) on the 18th, Ethereum was 2,832.63 dollars, down 3.84% from the previous day. Market capitalization was 341,880,000,000 dollars, and 24-hour trading volume was 25,620,000,000 dollars, up 13.88%. Circulating supply was 120,695,076.69 Ether.

Experts evaluate that cooperative discussions between regulators and industry are a key element for the maturation of the virtual asset market. Rather than heavy-handed regulation, institutional reforms that reflect technological progress are necessary, and this solicitation of comments could be a turning point for virtual asset trading regulation.