The US Securities and Exchange Commission (SEC) has welcomed a new leader, and this personnel change may have far-reaching impacts on the regulatory landscape for cryptocurrencies and digital assets. On April 21, 2025, local time, the SEC officially released a press release confirming that Paul S. Atkins, widely regarded as a 'crypto-friendly person', has taken the oath of office, becoming the 34th chairman of the US SEC.
This appointment has drawn significant attention from the market, especially considering that there are currently as many as 72 cryptocurrency-related exchange-traded fund (ETF) applications awaiting SEC approval. Does Atkins's assumption of office mean that these ETFs will all receive the green light?
Atkins was nominated by current President Donald Trump on January 20 this year and was confirmed by the Senate earlier this month with a vote of 52 in favor and 44 against. In his inauguration statement, he said, 'I am honored to have the trust of President Trump and the Senate to lead the SEC. I look forward to working with my colleagues and the dedicated professionals at the SEC to advance the core mission of the commission: to promote capital formation; maintain fair, orderly, and efficient markets; and protect investors. Together, we will ensure that America is the best and safest place in the world to invest and do business.'
Atkins is not a new face at the SEC. He served as an SEC commissioner during the George W. Bush administration from 2002 to 2008 and has extensive regulatory experience. Notably, he has long advocated for a 'technology-neutral' regulatory framework, arguing for a distinction between the commodity and security attributes of cryptocurrencies to avoid a one-size-fits-all regulatory approach that stifles industry innovation. This attitude aligns closely with the Trump administration's strategy of 'making America the global center of cryptocurrency', laying the groundwork for subsequent policy adjustments.
Atkins's assumption of office is widely viewed as a signal of 'regulatory easing'. His predecessor, Gary Gensler, was known for his strong critical stance against the crypto industry, particularly against 'altcoins' beyond Bitcoin. Gensler believed that the value of most cryptocurrencies is driven by market sentiment rather than fundamentals, making them unsustainable and prone to depreciation. During his tenure, the SEC adopted an enforcement-oriented strategy, filing lawsuits against several crypto companies and setting numerous obstacles for approving new cryptocurrency ETFs, especially for products other than Bitcoin spot ETFs.
In stark contrast to Gensler, Atkins publicly criticized the previous SEC administration's regulatory approach towards the crypto industry as 'ambiguous' and 'too aggressive' during his Senate confirmation hearing in March this year. He promised to reduce political interference, promote the formulation of clear digital asset regulations, and support capital formation. He clearly stated that establishing a clear and forward-looking regulatory regime for digital assets would be a 'key priority' during his tenure.
Industry observers generally expect that Atkins's leadership will mark a significant shift in SEC policy, moving from a past focus on enforcement to creating a clearer and more predictable regulatory environment. The market is full of anticipation, with expectations that under his leadership, the approval speed for cryptocurrency ETFs may accelerate, rules for token issuers may become more friendly, and the SEC's approach to cryptocurrency regulation may also become more collaborative. One analyst even optimistically declared, 'The US Securities and Exchange Commission has officially become a supporter of cryptocurrency!'
However, the first challenge that the newly appointed Atkins must confront is an unprecedented 'marathon' of cryptocurrency ETF approvals. According to data compiled by Bloomberg ETF analyst Eric Balchunas, there are currently 72 cryptocurrency-related ETF applications pending approval at the SEC. Analysts believe that the surge in applications may be the result of companies attempting to test the SEC's limits. The decisions Atkins makes regarding the numerous ETF applications could set new precedents for future cryptocurrency-related applications.
The wide range of assets covered by this long list of pending approvals is astonishing. In addition to mainstream cryptocurrencies with high market capitalization such as Solana (SOL), Ripple (XRP), Cardano (ADA), and Litecoin (LTC), it also includes numerous meme coins and ETFs related to NFT concepts, such as Dogecoin (DOGE), Bonk (BONK), and Pengu, even extending to a meme coin associated with the First Lady of the United States (Melania) and a meme coin ETF named 'Official Trump'. According to Bloomberg's predictions, if all 72 ETFs are approved, it is expected to attract over $80 billion in funding in the first year, pushing the total market value of cryptocurrencies beyond $3 trillion.
Although spot ETFs for Bitcoin and Ethereum have been approved towards the end of Gensler's term and afterward, viewed as a milestone for the inclusion of cryptocurrencies into the mainstream financial system, this has also sparked intense debates about which crypto assets should be classified as 'commodities' eligible for ETF issuance and which should be considered 'securities' subject to stricter regulation.
For Atkins, defining these diverse crypto assets, especially whether those with extreme volatility and lack of clear fundamental support, such as meme coins and NFT-related assets, qualify as 'Commodity Trusts' will be an unprecedentedly complex challenge. His decisions on this issue will undoubtedly set important precedents for future cryptocurrency-related ETF applications and have a profound impact on the direction of the entire market.
However, it is worth mentioning that despite the market's high expectations for Atkins, his appointment is not without controversy. The primary concern is the complex entanglement of interests: according to ethical disclosure documents, he and his wife hold an asset portfolio worth between $327 million and $589 million, including a $6 million exposure to digital assets.
More notably, the consulting firm Patomak Global Partners, where he serves as an advisor, previously had business dealings with FTX, and its investments in institutions such as Off the Chain Capital are deeply involved in the crypto space. This intricate connection to the cryptocurrency industry raises concerns about whether he can maintain neutrality during the regulatory process. Therefore, how to balance regulatory fairness and industry development will become a key challenge that tests his political acumen.
Standing at a new historical juncture, Atkins's assumption of office is both coincidental and inevitable. On one hand, the global market value of cryptocurrencies has surpassed $2.8 trillion, with Wall Street institutions holding over 5%, forcing regulators to confront this emerging asset class; on the other hand, the competitive and cooperative relationship between China, the US, and Europe in cryptocurrency regulation has become increasingly complex, and the US urgently needs to reshape its global leadership in crypto governance.
Looking ahead, the cryptocurrency market is expected to move away from 'barbaric growth' and enter a new stage of 'institutional empowerment'. As Atkins stated in his inauguration speech, 'We should not turn a blind eye to innovation, nor should we allow regulation to become shackles of progress. The SEC's mission is to create a stage for responsible innovation, not to build walls.' Whether this regulatory transformation can deliver on its promises remains to be seen.
