A sweeping regulatory revamp for the crypto sector is being fast-tracked by the SEC chair, with the goal of legitimizing markets, combating fraud, and fostering substantial innovation in the digital asset ecosystem.
SEC Chair Accelerates Crypto Regulations — Major Rules on the Horizon
Regulation of digital assets was placed at the forefront by U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins during his June 3 testimony before the Senate Appropriations Subcommittee on Financial Services and General Government. While addressing lawmakers in Washington, D.C., Atkins emphasized that constructing a structured and lawful base for cryptocurrency markets will define his tenure.
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.
He stated:
He connected the growing risks to the absence of a defined regulatory structure, noting, “That lack of regulatory framework also invites fraud.”
The agency’s newly formed Crypto Task Force, initially established under the interim guidance of Commissioner Mark Uyeda and now chaired by Commissioner Hester Peirce, was emphasized by Atkins. Four public roundtables have already been hosted by the task force, addressing core crypto policy themes such as the definition of securities, trading regulations, asset custody, and tokenization. A fifth meeting is expected to focus on decentralized finance (DeFi), reflecting its increasing influence on global markets. Atkins stressed that this initiative is designed to replace the piecemeal and reactive regulatory approach that has historically impeded both innovation and investor safeguards.
Commissioner Peirce was described by the SEC chairman as a “principled and tireless advocate for practical regulation.” He stressed that the Commission’s efforts should foster innovation while maintaining strong enforcement standards.
Atkins concluded his testimony by advocating for regulatory changes rooted in openness and procedural fairness, distancing the agency from the prior enforcement-led approach that had drawn backlash from industry participants. He clarified the SEC’s intended course of action moving forward.
Policymaking will be done through notice and comment rulemaking not through regulation-by-enforcement.
He affirmed that the Commission intends to apply its current powers to establish standards tailored to the needs of market participants. The enforcement strategy, he emphasized, will align with Congress’ foundational vision—targeting violations of these standards, especially those involving manipulation and fraud.
