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.
A comprehensive overhaul of the agency’s regulatory framework for crypto was urged by newly sworn-in SEC Chairman Paul Atkins, who cautioned that outdated regulations and an enforcement-driven approach had suppressed innovation for years.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., it was stated by Atkins that the existing regulatory landscape was in dire need of attention, emphasizing that a “rational, fit-for-purpose framework” must be established 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.
A pointed critique of the SEC’s prior leadership under former Chair Gary Gensler was delivered by Atkins during his first major public appearance, after having been nominated by President Donald Trump and confirmed by the Senate earlier this week.
“An aggressive “regulation by enforcement” strategy was pursued by the agency under Gensler’s leadership, with lawsuits being filed against major crypto firms such as Coinbase and Binance.”
“Under Gensler’s leadership, high-profile lawsuits were initiated by the SEC against digital asset firms, with claims made that numerous tokens constituted unregistered securities. However, a rollback of several enforcement actions was initiated under interim chair Mark Uyeda.”
“It was stated by Atkins that insights would continue to be gathered by the SEC through a series of roundtables organized by its crypto task force to develop a more coherent regulatory framework. The ongoing ‘Know Your Custodian’ session is being held as the third of five planned meetings aimed at crafting crypto custody standards and strengthening investor protections.”
“Having been appointed for his third term at the SEC after serving as a commissioner between 2002 and 2008, Atkins was presented as a strong proponent of innovation and the modernization of financial markets.”
“Known for his deregulatory outlook and supportive attitude toward cryptocurrency, he has been characterized as a former Wall Street executive and entrepreneur who stands in clear contrast to the more adversarial stance taken by the prior administration.”
“It was stated by Atkins that his primary objectives as the SEC’s 34th chairman would be the promotion of capital formation, the preservation of fair and orderly markets, and the safeguarding of investors, while ensuring that the United States continues to be recognized as the premier and safest destination for investment and entrepreneurship.”
“A commitment was made by Atkins to work alongside Congress, fellow commissioners, industry stakeholders, and the Trump administration to ensure that clear and practical regulations for the digital asset sector are drafted.”
It was emphasized by him that entrepreneurs developing blockchain solutions to advance the financial system should be provided with clear regulatory guidelines, with the point being made that market uncertainty is detrimental to economic expansion and technological innovation.
Industry insights are being gathered through the SEC’s crypto roundtables, which are being led by Commissioner Hester Peirce to guide the development of future regulations.
During the April 25 session, discussions were centered around crypto custody challenges, and considerations were given to whether the existing regulations under the Exchange Act, Investment Advisers Act, or Investment Company Act should be amended to address the distinct characteristics of blockchain technology.
Commissioner Hester Peirce was commended by Atkins for her “dedicated and principled support for sensible crypto regulation,” with her being described as “undoubtedly the right individual to be entrusted with leading the development of a comprehensive regulatory framework for the industry.”
