The SEC chairman, Paul Atkins, described radical reforms in cryptocurrency regulation during the fourth roundtable of the agency's cryptocurrency working group:
⚫ The SEC will move from ad hoc enforcement to formal regulation and exemptions.
⚫ New rules will define when digital assets qualify as securities or investment contracts.
⚫ Atkins criticized the previous "ostrich policy" towards cryptocurrencies, calling the Gensler-era initiative "false."
⚫ Registration forms will be updated to reflect the specific needs of cryptocurrencies.
⚫ Custody rules may be revised to allow self-custody under certain conditions.
⚫ The “special purpose broker-dealer” framework will be reevaluated.
⚫ Conditional exempt relief could be offered to encourage new crypto products and services.
