A comprehensive revision of regulatory policies was advocated by SEC Chair Paul Atkins to encourage the expansion of the Crypto industry, following years of restrictive enforcement practices.
Newly sworn-in SEC Chairman Paul Atkins urged a comprehensive overhaul of the agency’s regulatory framework for crypto, cautioning that outdated regulations and an enforcement-driven approach had suppressed innovation for years.
While addressing the SEC’s third crypto task force roundtable in Washington, D.C., Atkins stated that the existing regulatory landscape urgently needs attention, emphasizing the need to establish a “rational, fit-for-purpose framework” to encourage responsible innovation while ensuring investor protection.
Atkins said in his opening remarks:
Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.
During his first major public appearance, Atkins delivered a pointed critique of the SEC’s prior leadership under former Chair Gary Gensler, after President Donald Trump nominated him and the Senate confirmed him earlier this week.
Under Gensler’s leadership, the agency pursued an aggressive “regulation by enforcement” strategy, filing lawsuits against major crypto firms such as Coinbase and Binance.
A New Chapter Begins
Under Gensler’s leadership, the SEC initiated high-profile lawsuits against digital asset firms, claiming that numerous tokens constituted unregistered securities. However, interim chair Mark Uyeda rolled back several enforcement actions.
Atkins stated that the SEC will continue gathering insights through a series of roundtables organized by its crypto task force to develop a more coherent regulatory framework. The ongoing ‘Know Your Custodian’ session serves as the third of five planned meetings aimed at crafting crypto custody standards and strengthening investor protections.
Having served as a commissioner between 2002 and 2008, Atkins was appointed for his third term at the SEC and is recognized as a strong proponent of innovation and the modernization of financial markets.
Known for his deregulatory outlook and supportive attitude toward cryptocurrency, he is a former Wall Street executive and entrepreneur who contrasts sharply with the more adversarial stance taken by the prior administration.
Atkins stated that his primary objectives as the SEC’s 34th chairman are to promote capital formation, preserve fair and orderly markets, and safeguard investors, while ensuring the United States remains the premier and safest destination for investment and entrepreneurship.
Fresh Directive Issued
Atkins committed to working alongside Congress, fellow commissioners, industry stakeholders, and the Trump administration to ensure they draft clear and practical regulations for the digital asset sector.
He emphasized that entrepreneurs developing blockchain solutions to advance the financial system should receive clear regulatory guidelines, pointing out that market uncertainty harms economic expansion and technological innovation.
Commissioner Hester Peirce is leading the SEC’s crypto roundtables to gather industry insights and guide the development of future regulations.
During the April 25 session, participants centered discussions around crypto custody challenges and considered whether to amend existing regulations under the Exchange Act, Investment Advisers Act, or Investment Company Act to address the distinct characteristics of blockchain technology.
Atkins commended Commissioner Hester Peirce for her “dedicated and principled support for sensible crypto regulation,” describing her as “undoubtedly the right individual to lead the development of a comprehensive regulatory framework for the industry.”
