The recent shift in Washington toward a more crypto-friendly regulatory posture under the Trump administration has profound implications for the digital asset/crypto industry. For years, entrepreneurs in the blockchain and digital-asset securities space have faced regulatory ambiguity, fragmented guidance, and uncertainty about the permissibility of new business models. Today, however, the policy landscape is signaling greater openness to innovation. This is particularly true in the realm of Alternative Trading Systems (ATSs) for digital asset securities, where developments suggest significant growth is likely.

A centerpiece of this evolution is the recognition that traditional broker-dealer and ATS frameworks can and should adapt to the realities of digital markets. The current SEC Chairman has directed the SEC Staff that broker-dealers and ATSs already subject to SEC and FINRA oversight should be permitted to handle both digital assets that are securities and those that are not. This acknowledgment of the artificial line between security tokens and non-security tokens marks a significant step toward a more unified and efficient marketplace.

Equally important is the Chairman’s openness to reexamining custody rules in light of blockchain technology. Specifically, Chairman Atkins has floated the question whether customers should be permitted to self-custody through digital wallets, rather than relying exclusively on intermediaries. While such would pose several questions, it raises for the first time whether digital securities may be held directly by investors and, if it can be done safely, opens the door to new business structures that blend regulatory safeguards with the decentralized ethos of crypto.

Taken together, these developments reflect a broader regulatory trend: digital asset innovation is no longer peripheral—it is being integrated into the mainstream financial system. For ATS operators, this means unprecedented opportunities. The ability to list, trade, and clear both tokenized securities and non-securities on a regulated platform not only places such responsibility under a single license, but meets investor demand for seamless access to diverse digital asset/crypto products. The regulatory climate is increasingly favorable to firms that are prepared, well-advised, and structured in compliance with SEC and FINRA requirements.

For firms exploring entry into this market, one critical factor remains unchanged: regulatory approval is the threshold requirement. Here, practical experience navigating the Membership Application Program (MAP), Form ATS filings, and SEC–FINRA oversight is indispensable.  Compliance with laws and regulations best protects parties crypto businesses, and will continue to do so even when the next political administration moves into Washington.

About finLawyer.com-Andersen, P.C.

Mr. Andersen is a former prosecutor and a long-term securities regulator at FINRA, the NYSE and the New York State Attorney General’s Investor Protection and Securities bureau.  Over the past several years, he has worked with clients to create, register, and obtain FINRA approval for multiple digital asset securities ATSs—more than any other legal team in the United States. The Andersen, P.C. team is comprised entirely of former FINRA regulators, including enforcement attorneys and former FINRA examiners, including its work with J.U. Regulation, LLC.’s principal Julia Ulloa.   With its experience it has an excellent understanding of how regulators think, how digital asset applications are reviewed, and how to best position a client for approval and long-term success in the crypto space.

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