The SEC chair is fast-tracking a sweeping regulatory revamp for the crypto sector, aiming to legitimize markets, combat fraud, and foster substantial innovation in the digital asset ecosystem.
SEC Chair Accelerates Crypto Regulations — Major Rules on the Horizon
On June 3, U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins prioritized digital asset regulation during his testimony before the Senate Appropriations Subcommittee on Financial Services and General Government. Speaking directly to lawmakers in Washington, D.C., Atkins emphasized his commitment to building a structured and lawful foundation for cryptocurrency markets—a mission that 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.”
Atkins emphasized the proactive work of the newly formed Crypto Task Force, which Commissioner Mark Uyeda initially established under interim guidance and now operates under the leadership of Commissioner Hester Peirce. The task force has already hosted four public roundtables, directly tackling core crypto policy topics such as the definition of securities, trading regulations, asset custody, and tokenization. It plans a fifth meeting to explore decentralized finance (DeFi), acknowledging its growing impact on global markets. By launching this initiative, Atkins aims to replace the historically piecemeal and reactive regulatory methods that have hindered innovation and investor protection.
SEC Chairman described Commissioner Peirce as a “principled and tireless advocate for practical regulation.” He emphasized that the Commission must foster innovation while upholding 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.
