SEC Chair Atkins Confirms Shift from Strict Crypto Regulations, Suggests Comprehensive Framework

The Chairman of the US Securities and Exchange Commission, Paul Atkins, has declared a significant change in the agency’s stance towards digital assets, marking the conclusion of what he referred to as a “shoot-first-and-ask-questions-later” approach to enforcement.

During his address at the SEC Speaks conference, Atkins indicated that the agency would start drafting formal rules specifically designed for the cryptocurrency sector and would facilitate federally regulated custody and trading of both types of assets under one umbrella.

“The cryptocurrency markets have been stuck in a state of uncertainty with the SEC for far too long. We need to stop viewing innovation as a danger.”

A Fresh Start at the SEC

Atkins criticized the SEC’s earlier handling of crypto companies, claiming the agency provided minimal guidance while resorting to legal action against those who approached them in good faith.

He noted that this has created a regulatory environment marked by distrust and a lack of clarity. Atkins also pointed out the Commission’s neglect in updating registration processes for new technologies and expressed commitment to change the trend of ambiguous enforcement.

Instead, he has instructed SEC staff to interact openly with the industry and has already approved the publication of new staff guidance, including frequently asked questions on broker-dealer and transfer agent issues concerning digital assets.

He stated:

“This represents a new era at the SEC. The message from now on is not ‘figure it out on your own’ — it’s ‘let’s work together to find a solution.’”

A Comprehensive Crypto Framework

Looking forward, Atkins shared a vision that aims to permit SEC registrants to manage and trade both securities and digital assets within a single regulated framework.

He mentioned that this approach could reduce costs, foster innovation, and set the stage for what he refers to as a “super-app” future in the realm of financial services.

Atkins also announced plans to dissolve the agency’s Strategic Hub for Innovation and Financial Technology, known as FinHub, arguing that its limited focus and enforcement-driven image had rendered it ineffective. He intends to integrate innovation priorities throughout the entire Commission.

Though specific rule proposals are still being developed, Atkins’ address clearly illustrated a marked shift from the agency’s previous position, signaling a readiness to accept, rather than hinder, the digital asset landscape.