SEC considers new rules for AI, onchain finance

SEC Chair Paul Atkins indicated the agency is exploring new regulations for blockchain-based financial markets and AI-driven applications. He noted that current securities laws are ill-suited for onchain systems that integrate multiple market functions into single protocols. Atkins emphasized a shift towards formal rulemaking, rather than enforcement, to clarify the SEC's stance on hybrid traditional and decentralized finance models. This approach aims to provide legal certainty as AI and blockchain technologies increasingly automate financial processes and transactions, ensuring emerging technologies are not stifled by outdated rules.