The SEC is ushering in a new phase of crypto regulation by shifting away from aggressive enforcement tactics and focusing on establishing clear, transparent rules—an approach expected to unlock long-anticipated momentum for blockchain innovation.
SEC Chair Paul Atkins Shifts Crypto Focus to Clarity, Not Crackdowns
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins delivered a clear message to lawmakers during his May 20 testimony before the House Appropriations Subcommittee on Financial Services and General Government: the agency is taking a new course in its approach to crypto. Just weeks into his leadership, Atkins outlined an overhaul in the SEC’s handling of digital asset markets and pledged to provide greater clarity and fairness for both entrepreneurs and investors.
At the core of Atkins’ remarks was a move away from relying on enforcement actions as the primary means of shaping crypto policy. He emphasized that the SEC would now establish regulations through appropriate procedural channels.
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.
Atkins stated:
SEC Chair Paul Atkins further emphasized the need for “clear rules of the road” to protect investors from fraud, particularly to help them recognize scams that violate the law. He stressed that enforcement should focus on upholding existing obligations rather than introducing new ones.
SEC Chair Paul Atkins praised the Crypto Task Force—established earlier this year by Commissioners Mark Uyeda and Hester Peirce—as a strong example of internal collaboration driving long-overdue clarity in the crypto sector. The Task Force now leads efforts to develop a consistent regulatory framework that protects investors while fostering innovation.
The task force has held four roundtables so far on further defining security status, tailoring regulation for crypto trading, custody considerations, and tokenization. I look forward to the input from industry and additional public feedback during the next roundtable on decentralized finance.
As explained by the SEC Chair:
Alongside developing new policies, Atkins also proposed structural reforms within the SEC to embed innovation across all divisions. This includes plans to dissolve the Strategic Hub for Innovation and Financial Technology. It was argued by him that the responsibility for forward-thinking policies should not rest with a single specialized office but should instead be integrated into the agency’s overall mission. His vision reflects a significant philosophical and procedural transformation aimed at balancing strong investor protections with a regulatory environment that encourages responsible blockchain innovation.
