According to Foresight News, Paul Atkins, the chairman of the SEC, stated at an SEC conference that the SEC should not be afraid of innovation but should actively embrace and support it. He pointed out that markets are inherently dynamic, as humans innovate to seek solutions when facing problems. Over the past few decades, the SEC has played a role in promoting innovation but has sometimes also hindered its development. He mentioned that the crypto market has long been in a regulatory gray area under the SEC, which adopted an 'ostrich' approach, hoping that crypto assets would disappear, and later shifted to a 'regulate first, ask questions later' enforcement method.
He stated that the SEC hopes to improve its interaction with the public, instructing companies' financial departments to maintain transparent communication so that market participants can allocate capital more flexibly. The SEC has begun drafting rule proposals related to crypto and hopes that SEC-registered entities can custody and trade both securities and non-securities on a single platform, thereby reducing costs for investors.
At the same time, he mentioned that the SEC has requested Congress to integrate the functions of the Office of Innovation and Financial Technology (FinHub) into other departments. Although FinHub was established in 2018 and has played a role during key technological development periods, it is currently seen as a law enforcement tool rather than a tool to promote innovation, and thus its functions need to be reassessed. Atkins stated that he would ensure innovation is integrated into the overall culture of the SEC, rather than just being concentrated in a small office.