May 12 (Reuters) - Paul Atkins, the chair of the

Securities and Exchange Commission, laid out his vision for

overhauling the agency's cryptocurrency policies on Monday,

saying he plans to establish guidelines for distributions of

crypto tokens that are securities and consider whether

additional exemptions are necessary.

In remarks made at the outset of a public meeting of the

SEC's crypto task force, Atkins also indicated that the SEC may

consider tweaking its rules so that registered broker-dealers

with an alternative trading system - or ATS - can also

facilitate trading in non-securities, such as bitcoin or ether,

the two largest cryptocurrencies.

"A key priority of my chairmanship will be to develop a

rational regulatory framework for crypto asset markets that

establishes clear rules of the road for the issuance, custody

and trading of crypto assets while continuing to discourage bad

actors from violating the law," Atkins said.

Atkins, who was sworn in last month, has said his top

priority as SEC chair will be to have a firm foundation for

digital assets and keep politics out of securities laws.

The crypto industry has long clashed with regulators over

how federal securities laws translate to digital assets, with

many arguing that most crypto tokens are more akin to

commodities. Tokens classified as securities would require firms

to register with the SEC and provide certain disclosures to

investors.

President Donald Trump, who campaigned on promises to be a

"crypto president," has pledged to reverse an industry crackdown

under former President Joe Biden's SEC, which sued multiple

crypto companies, including Coinbase and Kraken, alleging they

had flouted its rules. The SEC's new leadership has agreed to

withdraw or pause many of those cases.

Republican SEC Commissioner Hester Peirce is leading the

SEC's crypto task force, which is charged with developing rules

and guidance for the sector.