Blockchain Association News: Urges SEC to Update Crypto Rules

Blockchain Association News: Calls on SEC to drop outdated stock rules

In a significant bid to redefine how crypto is regulated in the U.S., the Blockchain Association has requested the U.S. Securities and Exchange Commission (SEC) to desist from treating digital assets as ordinary stocks. In a letter sent on May 2, 2025, the group argued that current equity-style rules don’t work well for cryptocurrency because blockchain works in a completely different way. This blockchain association news is making buzz in the community. 

Crypto Is Not Like Stocks, Says Blockchain Association

The Association represents some of the industry leaders in crypto, including Uniswap Labs, Coinbase, and Ripple. In its response to SEC Commissioner Hester Peirce’s request for feedback on digital currency trading practices, the association said the SEC should rethink how it looks at the crypto market.

According to the group, rules meant for stock markets are outdated when applied to the cryptocurrency market. Blockchain systems work in real-time, don’t need middlemen, and make transactions faster and cheaper. Applying old rules to this new tech only slows things down and blocks innovation, they said.

Push for New and Flexible Rules

The Association called on the Commission to create new, flexible rules that match the way blockchain works today. They said that the agency should not limit who can use the decentralised network or how they use it. Instead of forcing strict protections like in the stock market, the group wants the focus to shift to better transparency and honest disclosures.

They also suggested updating "best execution" standards by focusing on doing proper research (reasonable diligence) instead of forcing every trade to meet the same rules as traditional markets.

Let Blockchain’s Openness Work for Regulation

One of the strongest points made was that the network is already transparent. All transaction data is recorded publicly and can be tracked in real-time. The Association believes that regulators can use this open data, like exchange APIs, to monitor the space without needing private user info.

However, the group did warn about privacy concerns. They referenced a 2024 article by policy executive Marisa Tashman Coppel, which said that asking for too much personal data could harm users and isn’t needed for effective oversight.

Instead, they argued, blockchain gives regulators a better way to keep watch without risking user safety.

A New Direction Under SEC Chair Paul Atkins

The letter also took a swipe at how the commission handled the industry under former Chair Gary Gensler. During his time, the SEC treated most tokens as securities and launched multiple enforcement actions. The Association stated that this approach is an attempt to force the digital assets industry into a stock market framework and without considering how much the technology differs.

Now, with new SEC chair Paul Atkins at the authority, matters appear to be transforming. Atkins has been more receptive to collaborating with lawmakers and the crypto community. He also created a crypto task force and held roundtables to get public input.

What’s Happening in the Industry Now

In other recent news, the SEC closed its investigation into PayPal’s PYUSD stablecoin without taking action. Ripple co-founder Chris Larsen also met with Chair Atkins, likely to discuss the ongoing XRP lawsuit. Meanwhile, the SEC and Binance agreed to delay their court case by 60 days.

Across the ocean, the UK’s financial watchdog is also looking into better rules for crypto and is asking for feedback from the public and industry leaders.

As the market grows, both regulators and industry leaders seem to be rethinking how to best protect users while allowing space for new ideas and technology.