SEC Chair Paul Atkins this week laid out four specific areas where the agency plans to issue guidance for on-chain markets, signaling a more structured approach to crypto regulation. Speaking on May 14, Atkins also floated the possibility of a limited 'innovation pathway' and reiterated his call for Congress to pass the CLARITY Act. The Hyperliquid Policy Center, led by Jake Chervinsky, praised the direction, calling the framing a welcome shift toward mapping on-chain systems to existing legal frameworks.
The four areas Atkins named
Atkins identified four categories that need clearer rules: the definition of an exchange for on-chain trading systems; how the broker-dealer framework applies; what qualifies as a clearing agency for on-chain clearing and settlement; and how crypto vaults should be treated. Each area has been a sticking point for projects trying to operate within U.S. securities law. By breaking them out, Atkins gave the industry a concrete list of topics to watch.
Why the innovation pathway matters
Atkins suggested the SEC may consider a limited 'innovation pathway' in the near term — a carve-out that would let certain on-chain experiments proceed without immediate enforcement risk. He emphasized that future-proofing requires notice-and-comment rulemaking, not ad-hoc guidance. That process is slow, but Atkins argued it's the only way to build rules that last. The industry has long complained about regulation by enforcement; this signals a move toward rulemaking first.
Atkins wants Congress to act
The SEC chair didn't stop at agency action. He called on Congress to pass the CLARITY Act, arguing that statutory language is the most powerful future-proofing mechanism available. Without legislation, he suggested, any SEC guidance could be reversed by the next administration. The message: regulators can only go so far without lawmakers filling in the gaps. The CLARITY Act has been introduced before but hasn't advanced; Atkins' public backing gives it a fresh push.
Industry reaction — and a token move
The Hyperliquid Policy Center called Atkins' approach 'a thoughtful way to bring on-chain markets into the regulatory fold.' HPC specifically highlighted on-chain clearing and settlement as 'one of the most significant financial infrastructure innovations of our generation.' Hyperliquid's native token, HYPE, traded at $42.98 at the time of writing, up 2% in 24 hours but still about 27% below its all-time high of $59. The modest bump suggests the market is waiting for concrete proposals, not just a framework.
Whether the CLARITY Act gains traction in a divided Congress remains the biggest open question. Atkins has made his case — now it's up to lawmakers to pick it up.
