Paul Atkins Outlines SEC’s Bold Crypto Regulation Agenda at Roundtable

At the SEC’s latest Crypto Roundtable, Chair Paul Atkins outlined his vision for crypto regulation, focusing on issuance, custody, and trading. He argued new standards are essential for market participants, advocating an approach distinct from traditional finance. This speech marks a pivotal shift, promising a transformational path for US crypto policy.

At the SEC’s recent Crypto Roundtable, Paul Atkins, the newly appointed chair, made significant remarks about the future of crypto regulation in the US. He pinpointed three main focus areas: issuance, custody, and trading. This observation marks a reflective shift from his previous Roundtable talk in April and clearly outlines his intentions to revolutionise the US crypto regulatory landscape.

The fourth Crypto Roundtable discussion was primarily themed around tokenization, something that has been much anticipated for weeks. Various SEC members shared their full statements ahead of the event. Hester Peirce, the so-called “Crypto Mom,” was particularly enthusiastic, while Caroline Crenshaw maintained her usual sceptical stance. But it was Atkins’ keynote address that really captured attention:

He suggested that to fulfil President Trump’s vision of making the US the “crypto capital of the planet,” the SEC must adapt quickly to the pace of innovation in the industry. Regulations crafted for traditional off-chain securities may not be suitable for on-chain assets and could hinder blockchain technology’s growth, he warned.

This was Atkins’ second Crypto Roundtable since taking over as SEC Chair, and today’s speech was noticeably more in-depth than his earlier, quite brief, remarks. His views extended beyond mere tokenization, emphasising a stark difference between digital assets and traditional financial institutions, advocating for a tailored approach.

Atkins stressed that the SEC should establish clear and appropriate standards for crypto market participants. In his view, there are three key areas needing attention: First, he wants the SEC to facilitate the explicit issuance of securities contracts by crypto firms, as many have skirted the Howey Test. He pointed out that currently, only four crypto companies have registered their securities offerings, signalling a gap that needs addressing.

Next on the agenda is liberalising custody rules for cryptoassets. Atkins plans to reform the “qualified custodian” criteria, aiming to modernise the broker-dealer framework. This would include acknowledging blockchain’s self-custody options, which do not align with current definitions of asset custodians under the law.

Finally, he also aims to broaden asset trading. Atkins does not limit his vision to just allowing individual companies to handle both securities and commodities; he’s open to allowing what’s known as “pairs trading,” blending the two categories directly. His main thrust is to keep US securities markets robust, pushing Congress to rally behind these changes.

In summary, Paul Atkins’ ambitious agenda for the SEC’s approach to crypto was solidified today in a keynote that can only be described as a manifesto of sorts. Given his bold vision and committed leadership, the expectation is that the SEC will indeed bring meaningful advancements to US crypto regulation moving forward.