- Paul Atkins calls for SEC crypto reforms, focusing on clarity, innovation, and investor safety.
- SEC under Paul Atkins will shift from enforcement to structured crypto regulations.
- Atkins urges the SEC to modernize crypto rules, reducing ambiguity and supporting blockchain.
New SEC Chairman Paul Atkins urged a complete overhaul of the agency’s crypto regulatory framework during the third crypto task force roundtable in Washington, D.C. He emphasized that outdated rules and enforcement-heavy approaches have hindered innovation for years, calling for a rational, fit-for-purpose framework to encourage responsible growth while protecting investors.
After Senate confirmation, Atkins assumed office earlier this week and used his first major address to highlight regulatory shortcomings. Policying past policies, he said that the market and regulatory fluctuations caused by the SEC have made it difficult to encourage technological advancement.
His comments refer to the prior leadership of the agency by the former chair, Gary Gensler, under the aggressive ‘regulation through enforcement’ approach where the agency sues some of the leading players in the digital asset market like Coinbase and Binance.
Shift from Enforcement to Structured Policy-Making
The SEC’s approach under Gensler led to numerous lawsuits, arguing that many digital tokens fell under securities laws. However, interim Chair Mark Uyeda began pulling back several enforcement actions, signaling a gradual shift. Atkins confirmed that the SEC will continue gathering input through a series of public roundtables to design clearer regulations tailored to the crypto industry.
Atkins addressed the importance of the ongoing “Know Your Custodian” roundtable, which is part of a broader five-session series. These meetings aim to define custody rules for digital assets while evaluating whether existing financial laws like the Exchange Act and the Investment Advisers Act can adapt to blockchain technology. The Chairman emphasized that a structured and transparent framework would reduce ambiguity and support economic innovation.
Commitment to Collaboration and Modernization
When Atkins resumed his SEC duties for a third time after his initial term from 2002 to 2008, he continued advocating for market advancement and modernization. The entrepreneur and Wall Street veteran applied his deregulatory mindset to lead the SEC after serving as commissioner from 2002 until 2008.
Atkins dedicated himself to developing practical guidelines for digital assets through collaboration with Congress and commissioners, industry representatives, and the Trump administration. According to the regulator, blockchain entrepreneurs require defined regulations that enable them to advance technological progress. According to his analysis, investment and entrepreneurship in the United States suffer from the unclear state of the market.
As a dedicated supporter of crypto innovation, Commissioner Hester Peirce remains key to organizing SEC roundtable events focused on cryptocurrency. Atkins commended Peirce’s work while asserting that her authoritative position would be essential for constructing a regulatory approach supporting innovative ideas and market honesty.
