New SEC Chairman Speaks at Cryptocurrency Meeting: What Did He Say?

Paul Atkins, the new chairman of the U.S. Securities and Exchange Commission (SEC), announced that they would take a more constructive approach to crypto regulations.

Paul Atkins, appointed to head the SEC by President Donald Trump, announced during the SEC's fourth cryptocurrency working group meeting held on Monday that the institution would completely take a different approach to regulating crypto assets compared to previous administrations. Atkins stated, "A new era is beginning at the SEC. Policies will now be shaped not by random sanctions, but by our regulatory tools that will set appropriate standards for market participants."

Atkins, known for his proximity to cryptocurrencies, frequently spoke about the advantages that digital assets could provide in the past and expressed that he would work with the U.S. Congress to develop the legal framework. Atkins's approach significantly diverges from his predecessor Gary Gensler's harsh stance towards the crypto sector. Gensler often characterized the crypto markets as "vulnerable to fraud and manipulation" and had filed lawsuits against many major crypto companies during his tenure.

Atkins stated that despite the previous administration encouraging firms to "come and talk to the SEC," in practice, these discussions were ineffective and lacked sincerity. He criticized, "The SEC did not update its registration forms in line with new technologies and displayed an approach of 'putting its head in the sand.'"

The new chairman also mentioned that the rules regarding the custody of crypto assets could be reviewed. Atkins emphasized that regulations that would allow funds and investment advisors to self-custody under certain conditions would be considered. Additionally, he indicated that innovations could be made within the framework of specialized broker-dealers.

Chia Network CEO Gene Hoffman, emphasizing that the new SEC administration is more constructive and open-minded in the crypto space, stated, "This SEC is focusing not only on risks but also on the opportunities created by decentralized blockchains for investors."