Jamie Selway, the SEC’s Director of the Division of Trading and Markets, delivered a speech today on trust and trustless access, directly addressing the rise of digital assets and blockchain technology—the speech was presented in New York at the SIFMA Market Structure Conference.
Selway shared that since this past summer, Trading and Markets has engaged a variety of market participants regarding digital assets, including services like primary issuance, secondary trading, and custody.
Selway stated:
Our goal is to advise the Commission on how to facilitate “innovation without arbitrage.”
“As policy is modernized to accommodate digital assets, I believe neither new entrants nor legacy providers should be advantaged. We should not impose ourselves between commercial competitors. And we should trust market forces as the ultimate arbiter of value.”
He noted the advent of DeFi, non-custodial wallets, and the rapidly changing global landscape.
Selway reiterated what SEC Chairman Paul Atkins stated that the US must remain a “place where people can experiment and learn, fail and succeed, under rules that are both firm and fair.”
Trustless digital assets can offer promising innovations and efficiencies to markets.
“The tension inherent in these tasks is worth your reflection.”
The transition to digital assets is inevitable but also presents a challenging task. A quick solution is not doable, but if regulated effectively, the digital asset ecosystem will drive value for all constituent parties engaged in the transfer of value and investments.
