Chainlink CEO Meets SEC Chairman
Chainlink’s CEO, Sergey Nazarov, recently met with U.S. Securities and Exchange Commission Chairman Paul Atkins. During the meeting, Nazarov noted that Atkins showed a strong interest in determining the best ways to ensure that on-chain assets comply with securities laws.
Nazarov, whose company focuses on verifying real-world data for smart contracts, expressed his appreciation for the agency’s shift in perspective. The SEC seems to be moving away from questioning whether the U.S. should allow blockchain tokenization innovations in the financial system, and instead is examining how these innovations can be implemented efficiently and safely in the market.
“While cryptocurrencies define the majority of our industry’s value today, I personally feel very strongly that the real-world asset trend and digital-asset tokenization in the institutional world will grow to be the majority of the market cap in our industry,” Nazarov shard in an interview following his Friday meeting. He remarked that Atkins “has very clear ideas and goals with getting the traditional financial system operating correctly on-chain.”
Optimistic Outlook for Blockchain Integration
On the same day, Nazarov met with Patrick Witt, the new crypto liaison at the White House. He conveyed optimism, stating that he is encouraged “based on the urgency and speed” demonstrated by both the SEC and the White House. He anticipates that blockchain infrastructure could fit within broker-dealer and transfer agent regulations, potentially allowing full tokenization “maybe by the middle of next year.”
The Chainlink co-founder emphasized that a critical task lies in ensuring that blockchains meet the requirements for a “legally binding transfer” of assets. “That’s a class of problems that’s now getting worked through with us,” he stated, adding that Atkins is well-informed on the matter and mentioning the chairman’s recent address where he announced his “Project Crypto” initiative.
SEC’s Evolving Stance on Crypto Regulation
While an SEC spokesperson declined to comment on the meeting, it is clear that the agency has been gaining momentum with more crypto-friendly statements, responses, and policy actions. Just last week, the securities regulator released a joint statement with the Commodity Futures Trading Commission, indicating that registered platforms are permitted to pursue spot trading of certain crypto assets. Additionally, the SEC laid out a near-term agenda filled with crypto initiatives and announced collaboration with the CFTC to inform the media that both regulatory bodies will work closely together to facilitate crypto developments.
Under the previous leadership of Gary Gensler, the SEC was hesitant to develop tailored regulations for digital assets. However, Atkins asserts that the existing securities laws and the agency’s powers provide sufficient authority to establish friendly policies clarifying the government’s stance on crypto.
Legislative Progress on Crypto Market Structure
Simultaneously, the Senate is progressing with a crypto market structure bill aimed at instituting new regulations for crypto and its governing bodies. This effort made headway on Friday as a more extensive version of the Senate Banking Committee’s previous bill began to circulate.
Chainlink’s network also played a role in a significant development last week, as the U.S. Department of Commerce selected it among the digital asset platforms to issue major economic data—specifically, the gross domestic product report—via blockchain. Officials involved in the release indicated that this is set to become a continuing trend for the Commerce Department and other federal agencies.
“Our industry has a very unique kind of moment in time right now, that if it uses it well it can solidify its position in the U.S. and therefore the global economy,” Nazarov concluded.
