SEC Chair Paul Atkins announced that the agency will move quickly to implement the President’s Working Group recommendations on crypto regulation. It aims to foster innovation and provide greater clarity in digital asset markets. Specifically, the initiative seeks to shift away from enforcement-led oversight toward a rules-based approach that balances investor protection with technological advancement. Notably, Atkins made the disclosure during the Wyoming Blockchain Symposium. Central to this vision is the President’s Digital Assets Group, which will lead the next phase of digital asset regulation in the United States. The group previously released a roadmap urging regulators to adopt a more collaborative and innovation-friendly approach. Atkins has reiterated the zeal to follow the recommendations as soon as possible. This marks a significant departure from the policies of former Chair Gary Gensler, who set a stricter regulatory tone. Gensler frequently argued that most cryptocurrencies should be subject to existing securities laws. Critics claimed that under Gensler’s tenure, the SEC’s “regulation by enforcement” approach prompted many developers to move their projects overseas. Atkins takes a different stance, arguing that only a small fraction of tokens should be classified as securities. According to him, what defines a security is not the token itself, but how it is marketed, packaged, and sold to investors. In his speech, Atkins emphasized the need to strike a balance between investor safety and technological progress. He said the SEC will design rules that are firm enough to curb fraud. However, these rules will also be flexible enough to adapt to evolving technology. As part of this shift, the Commission plans to introduce safe harbor periods that will allow startups time to build before facing heavy compliance requirements. It will also create tailored exemptions for digital assets, providing a more flexible approach. This marks a shift away from the ‘one-size-fits-all’ model of traditional securities regulation.
