Will the SEC finally come out in the open?

Recently, U.S. SEC Chairman Paul Atkins stated:

In the future, we will no longer use the enforcement model of ‘act first and talk later’; instead, we will adopt a notice-and-comment procedure, welcoming everyone to participate in giving feedback.

This means that the rules for cryptocurrency will be publicly solicited in advance, instead of suddenly issuing fines or lawsuits, where project teams are caught off guard without even understanding the rules.

In my view:

1️⃣

This is a good thing, indicating that U.S. regulation is starting to establish rules, rather than relying on a catch-me-if-you-can approach to manage the market.

2️⃣

Don’t be too optimistic; the SEC has said things like this before. The key is the strength and sincerity of the enforcement. It’s easy to say nice things, but actually empowering the industry to participate in rule-making would signify a real change.

3️⃣

For us ordinary users, what we care about most is: can we play legally? Will exchanges suddenly shut down? Can projects still be launched?

What is clear now is that at least in the future, there will be advance notice, opportunities for feedback, and a bit of breathing room.

4️⃣

However, don’t expect the SEC to suddenly become cryptocurrency-friendly. They have just changed their approach — it’s not that they won’t come after you, but they will notify you before they do.

This marks a shift in regulation from surprise attacks to procedural justice.

The rules may not be friendly, but at least you can see where the knife is coming from.