SEC Proposes Major Crypto Regulatory Overhaul Amid Market Volatility

The U.S. Securities and Exchange Commission unveiled a sweeping regulatory agenda targeting digital assets, with nearly half of its 20 proposed rule changes focused on crypto. Chair Paul Atkins emphasized creating "clear rules of the road" for crypto issuance and trading while maintaining safeguards against fraud.

The planned reforms could redefine key market terms like "dealer" and potentially allow direct crypto trading on traditional securities exchanges. This comes as the Trump-backed World Liberty Token sheds 50% from its peak, though early investors remain profitable.

With the crypto market valued at $3.8 trillion against $120 trillion in traditional U.S. capital markets, the SEC's moves signal growing institutional recognition of digital assets. The proposals aim to integrate cryptocurrencies into the mainstream financial system while addressing concerns about market stability.