SEC Chairman Paul Atkins has called for a major review of crypto regulations, criticizing the current rules as outdated. He aims to establish a new framework that encourages innovation in digital assets. Atkins plans to work with industry and government stakeholders to modernise regulations in the context of blockchain technology, while recognising the challenges faced by custodians in the crypto space.
In a recent roundtable discussion, SEC Chairman Paul Atkins has called for a comprehensive overhaul of the regulations governing crypto assets, arguing that the current rules are both outdated and overly restrictive. At the SEC’s third crypto task force event, Atkins emphasised the urgent need for reform, stating that the existing regulatory landscape is inhibiting innovation in the blockchain sector.
Atkins’ remarks indicated a clear frustration with how regulatory uncertainty has stifled market growth over the last few years. He said, “Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.” His focus is on creating a rational framework suited for digital assets within the U.S.
To develop this new framework, Atkins expressed intentions to work closely with industry stakeholders, fellow commissioners, Congress, and the Trump administration. He believes that opportunities within crypto and blockchain technologies could significantly enhance the financial system and asserted that those developing in this space “deserve clear regulatory rules.”
Moreover, the discussion touched on the burdens custodians face when trying to adhere to federal securities laws regarding crypto assets. Atkins raised the question of whether current custody rules under various acts need modifications to better accommodate digital assets and their underlying technology.
Atkins, who recently began his third term at the SEC, commended fellow Commissioners Mark Ueda and Hester Peirce for their efforts. Notably, he applauded Peirce, often dubbed “crypto mom,” for her relentless advocacy for sensible crypto regulation, asserting that she is well-suited to lead the initiative for a balanced regulatory framework in this area.
Having just been inaugurated as chairman after being nominated by President Trump and confirmed by the Senate, Atkins reiterated his goal to establish a transparent regulatory structure for digital assets during his swearing-in ceremony. Additionally, he reaffirmed a commitment to priorities including capital formation, market efficiency, and investor protection.
Atkins has a history in Wall Street and brings a pro-crypto, deregulatory outlook, distinguishing himself from his predecessor Gary Gensler, whose regulatory stance has been more stringent. The SEC’s crypto task force, under Peirce, has previously facilitated discussions to carve out a new regulatory route that veers from the previous administration’s enforcement-heavy policy. Given Atkins’ inclination towards a more innovation-friendly regulatory atmosphere, significant changes may be on the horizon for digital assets and blockchain regulations.
