U.S. SEC Chair Paul S. Atkins has underscored the urgent need for clear regulatory frameworks for cryptocurrencies—particularly stablecoins, which he affirmed will be overseen by banking regulators rather than the SEC .
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🛤️ What this means
Stablecoins under banking supervision
Atkins confirmed stablecoins would not fall under SEC jurisdiction, but rather under banking and possibly Federal Reserve oversight .
Shift to rule‑making over enforcement
He advocates replacing an enforcement-heavy approach with formal rule‑writing on issuance, custody, trading, and classification of tokens .
Support for innovation
Atkins aims to foster fintech growth, enabling flexible custody rules (moving beyond traditional "physical possession" standards) and accommodating “super‑app” trading platforms mixing securities and crypto assets .
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🏛️ The wider landscape
Congress in sync: The U.S. House recently passed the GENIUS Act, the Clarity Act, and the Anti‑CBDC Surveillance State Act, signaling harmonized efforts with Congress to define and regulate digital assets .
Rolling back prior rules: As part of a deregulatory agenda, Atkins has scrapped numerous proposed rules from the Gensler era, including those targeting crypto exchanges .
A down‑but‑not‑out enforcement tone: While the SEC is scaling back enforcement—closing cases against Ripple, Coinbase, Kraken, etc.—a new Cyber and Emerging Technologies Unit (CETU) has been formed to combat fraud, reflecting a more targeted approach .
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📌 Top‑level summary
Initiative Details
Stablecoins Reassigned to banking supervision
Formal regulations Clear guidance on token issuance, custody, trading
Innovation-friendly Custody rules modernized for digital ecosystems
Legislative alignment House and SEC actions complement each other
Enforcement reshaped Focused on fraud, not broad suits
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🧐 What to watch next
1. Final texts of crypto bills: The Genius, Clarity & Anti‑CBDC Acts move to Trump’s desk or the Senate—monitor final language and potential signatures.
