SEC Chairman Calls for Cryptocurrency Reform Regulatory Framework, Promises to Establish a 'Reasonable Regulatory Framework' for Digital Assets
On May 13, SEC Chairman Paul Atkins announced a plan to modernize cryptocurrency regulations at a crypto roundtable, aiming to solidify the United States' position as a blockchain innovation hub, and to support the development of the digital asset market with reasonable regulation, rather than unpredictable enforcement actions that hinder innovation.
Chairman Atkins proposed a cryptocurrency reform agenda covering three aspects:
· Issuance: Aimed at simplifying compliance for cryptocurrency issuance, expanding legitimate custody options, and improving modern trading frameworks, while considering exemptions, safe harbors, and disclosure guidelines related to cryptocurrencies.
· Custody: Supporting the repeal of restrictive announcements, clarifying the definition of 'qualified custodians,' and developing custody rules to accommodate self-custody and industry best practices.
· Trading: Supporting brokerage firms in providing comprehensive services and considering conditional exemptions to accommodate new products.
Meanwhile, in response to President Trump’s call to make the U.S. the 'cryptocurrency capital of the world,' SEC Chairman Atkins warned that innovation may flow overseas unless the SEC adapts.
He also praised the crypto working group led by Mark Uyeda and Hester Peirce for breaking down internal silos and providing rapid regulatory guidance for the entire agency.
Atkins emphasized that SEC rules must balance investor protection and innovation, with anti-fraud enforcement remaining a priority, and regulation returning to focus on violations rather than replacing policy with enforcement 'intent.' At the same time, the SEC will continue to formulate rules, provide guidance, and coordinate among agencies to strive to make the U.S. a leader in tokenized financial infrastructure.
However, this reform plan also faces numerous challenges. Firstly, the complexity and decentralized nature of cryptocurrencies make regulation exceptionally difficult. Secondly, how to protect investor rights without stifling innovation is a key issue that the SEC needs to address.
Additionally, other major economies around the world are also actively formulating their own cryptocurrency regulatory policies, and whether U.S. reforms can remain competitive globally is still uncertain.
What do you think about Atkins' reform plan? Do you believe the SEC's new regulatory framework can balance innovation and investor protection? Leave your thoughts in the comments!