Washington, May 19, 2025 – Paul S. Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), delivered a clear message at the SEC Speaks conference: the regulator won’t shy away from technological innovation, including cryptocurrency markets. On the contrary – it’s ready to engage with them openly and constructively.
🔹 “The SEC must not fear innovation. We should embrace and promote it,” Atkins said at the opening of his speech. According to him, it’s high time the Commission moved beyond years of passivity and confusing decisions around crypto assets.
No More “Ostrich Policy”: A New Approach to Crypto Regulation
Atkins did not mince words when criticizing the SEC’s previous stance. He pointed out that for a long time, the Commission stuck its head in the sand, hoping crypto would simply vanish. Then came the opposite extreme: regulating through enforcement, often with no clear guidance. “Shoot first, ask questions later,” is how Atkins described it.
Now, he wants a reset: greater transparency, open dialogue with the market, and clear rules of the game. He has already directed SEC staff to start drafting proposals for crypto-specific regulations and trading policies.
One Roof for Crypto and Traditional Securities
A key part of Atkins’ vision is to allow SEC-registered entities to custody and trade both securities and non-securities under one roof. This move, he says, could streamline operations and reduce costs for investors, while helping to bring crypto assets into a regulated federal framework.
Another big shift is the restructuring of the SEC’s FinHub – its innovation-focused division dealing with blockchain, AI, and other emerging technologies. Rather than keeping it as a separate unit, Atkins wants it integrated across the agency’s broader structure, embedding innovation into SEC’s culture itself.
Spotlight on the Bloated CAT System
Another major talking point was the Consolidated Audit Trail (CAT), a system that collects vast amounts of trading data from U.S. markets. Its operational costs have now ballooned to $250 million a year, a burden ultimately carried by investors.
Atkins has ordered a full review of the system – including its cost structure, data collection scope, and reporting requirements – to determine if it’s still fit for purpose.
Conclusion: The SEC Is Changing – Innovation Is a Strength, Not a Threat
Atkins closed his speech by repeating his key message: Markets evolve, and the SEC must evolve with them. No more standing still – the Commission’s new role is to support innovation while ensuring investor protection through clear and consistent rules.
🗨️ “We shouldn’t be telling markets to stand still. We should be enabling them to grow – responsibly, but freely,” Atkins concluded.
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