SIFMA Urges SEC to Modernize Crypto Rules with Transparent, Tech-Aligned Framework
In a pivotal meeting with the U.S. Securities and Exchange Commission (SEC), the Securities Industry and Financial Markets Association (SIFMA) called for a more modern and open regulatory framework for digital assets. The gathering, held Thursday with the SEC’s Crypto Task Force, focused on the evolving landscape of cryptocurrencies, tokenized securities, and digital commodities.
SIFMA, a leading voice for traditional financial firms, pushed for regulations that better reflect technological advancements in the financial sector. The organization emphasized the need for consistency in rules governing new digital platforms and services while urging regulators to update existing disclosure requirements to accommodate digital asset classes.
The group also stressed the importance of clearly separating key market functions — such as trading and custody or exchange and brokerage — to maintain market integrity. At the same time, SIFMA encouraged competition and interoperability among service providers, arguing that a fragmented or siloed system would slow innovation.
One key point of contention was the approach to retail participation. SIFMA advised the SEC to keep direct retail trading of digital assets limited under current conditions, citing concerns over investor protection and market maturity.
Crucially, SIFMA called for a transparent rulemaking process as the SEC defines foundational terms like “securities” and “digital commodities.” The group warned against ad hoc or behind-the-scenes regulatory decisions, especially regarding new issuance and trading models involving digital assets.
To ensure global applicability and long-term relevance, SIFMA recommended that any new crypto legislation include cross-border considerations and transitional arrangements. This reflects the financial industry's growing interest in integrating blockchain technologies without destabilizing existing systems.
SIFMA’s influence is significant — its members include major broker-dealers, investment banks, and asset managers responsible for a vast share of U.S. financial activity. According to its website, SIFMA’s broker-dealer members account for nearly 90% of market revenue and manage $13 trillion in client assets.
Earlier this week, the association also opposed efforts by some digital asset firms to secure no-action or exemptive relief from the SEC, which would allow them to offer tokenized equities without undergoing the full regulatory process. SIFMA criticized these moves as lacking transparency and urged the SEC to prioritize public input before approving such exceptions.
Instead of regulatory shortcuts, SIFMA is advocating for a comprehensive, open policy framework — one that balances innovation with investor protection and preserves the structural integrity of U.S. capital markets.