Cryptocurrency regulation is entering a new era as the SEC seeks to move away from aggressive enforcement in favor of clear rules, opening up the long-awaited momentum for innovation in blockchain.
Crypto is getting a regulatory reboot as SEC Chair Paul Atkins prioritizes clarity over suppression.
The Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, delivered a clear message to lawmakers during his testimony on May 20 before the House Financial Services and General Government Subcommittee: the agency is changing course regarding cryptocurrencies. Just weeks into his term, Atkins laid out a revised approach for how the SEC will handle digital asset markets, promising clarity and fairness for both entrepreneurs and investors.
Atkins's central message was a shift away from using law enforcement measures as the primary tool for shaping crypto policy. He made it clear that rules will now be created through appropriate channels. Atkins stated:
A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules for the issuance, custody, and trading of crypto assets, while still deterring wrongdoers.
"Clear rules are necessary to protect investors from fraud - not least to help them identify frauds that do not comply with the law," added the SEC chair. He emphasized that law enforcement measures should be used to uphold already established commitments, rather than inventing them.
Atkins praised the SEC's Crypto Working Group, formed earlier this year by commissioners Mark Uyeda and Hester Peirce, as an example of internal collaboration that helps bring much-needed clarity to this sector. The working group is responsible for developing a consistent framework for regulating crypto markets in a way that fosters innovation and protects investors. The SEC chair explained:
The working group held four roundtables on topics related to further defining the status of securities, adapting regulations for crypto trading, custody considerations, and tokenization. I look forward to industry opinions and additional public feedback during the next roundtable on decentralized finance.
In addition to developing policy, Atkins also proposed structural changes within the SEC to integrate innovation across all departments, including plans to dissolve the Strategic Center for Innovation and Financial Technology. He argued that forward-looking policies should not be the domain of a small office but part of the agency's broader mission. His vision signals a significant philosophical and procedural shift aimed at balancing robust investor protection with a market environment that promotes responsible innovation in blockchain.