Newly appointed SEC Chairman Paul Atkins is setting the tone for a more innovation-friendly regulatory approach by calling for a comprehensive reevaluation of the agency’s digital asset framework.
Outdated Regulations Under Fire
Speaking at the SEC’s third crypto task force roundtable, Atkins didn’t mince words: “Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.” His remarks signaled a shift away from the enforcement-heavy posture of his predecessor, Gary Gensler.
Atkins emphasized that current regulations fail to accommodate blockchain technologies and digital assets, creating confusion for entrepreneurs and institutional investors alike.
Commitment to Clear and Practical Rules
Atkins pledged to work closely with fellow commissioners, Congress, and the Trump administration to develop a “rational fit for purpose framework” that fosters innovation without compromising investor protections.
He believes crypto and blockchain technologies hold the potential to modernize the financial system and that builders in the space “deserve clear regulatory rules.”
One of the major focus areas discussed at the roundtable was the issue of custody rules. Atkins raised concerns about how existing custody regulations under the Exchange Act and the Investment Company Act apply to digital assets, hinting at potential reform.
Praise for Peirce and the Path Forward
Atkins lauded Commissioner Hester Peirce, nicknamed “crypto mom,” for her consistent support of reasonable crypto policy. “She is certainly the right person to lead the effort to come up with a rational regulatory framework for crypto assets in their markets,” he stated.
With Peirce’s crypto task force having hosted numerous roundtables in recent years, the groundwork appears to be laid for the Atkins-led SEC to advance comprehensive reform.
A New Era of SEC Leadership
Atkins officially took office earlier this week after being nominated by President Trump and confirmed by the Senate. A known deregulation advocate with a background in Wall Street and tech entrepreneurship, Atkins contrasts sharply with his predecessor.
During his swearing-in ceremony, he reaffirmed his dedication to fostering capital formation, improving market efficiency, and protecting investors—all while supporting a modernized approach to crypto.
As the SEC prepares to review a growing number of crypto ETF applications and tackle evolving market dynamics, Atkins’ leadership may usher in a more welcoming regulatory environment for digital assets in the U.S.