Atkins spoke at the SEC’s headquarters in Washington, D.C., and openly slammed his predecessor, Gary Gensler.
His comments came just before the agency’s third crypto roundtable on crypto custody (or safeguarding digital assets on behalf of clients).
These moves alone show that the agency has made a sharp pivot from its aggressive stance against crypto under Gensler and the Biden administration.
His main priority is to replace the “enforcement-first” with a more welcoming system that offers legal clarity and encourages innovation.
For now, the crypto industry is breathing a little easier under Atkins, and is watching closely to see what the SEC will do next.
Less than a week since being sworn in, Paul Atkins has wasted no time in setting a new tone at the Securities and Exchange Commission (SEC).
Atkins took advantage of his first public remarks as chair, to criticize the previous administration’s handling of crypto regulation.
Even better he promised a future that embraces innovation rather than stifles it.
Atkins spoke at the SEC’s headquarters in Washington, D.C. and openly slammed his predecessor, Gary Gensler.
According to Atkins, Gensler created an environment of uncertainty that did much to hurt technological progress.
“Innovation has unfortunately been stifled for the last several years due to market and regulatory uncertainty that the SEC has fostered,” Atkins said.
New promises from Atkins
His comments came just before the agency’s third crypto roundtable on crypto custody (or safeguarding digital assets on behalf of clients).
Atkins made it clear that he does not intend to continue what many in the industry have criticized as regulation by enforcement.
Instead, he promises to work toward a more transparent and rational framework for digital assets.
Atkins also took a moment to personally thank Commissioner Hester Peirce, who is also affectionately known in the industry as “Crypto Mom.”
Pierce has led the SEC’s newly formed crypto task force since January and has helped to guide the agency’s approach toward crypto.
“My warmest personal thanks go to Commissioner Pierce for her principled and tireless advocacy for common sense crypto policy within the United States,” Atkins said.
The SEC has already dropped several high-profile crypto investigations under Pierce’s leadership, and has also issued statements exempting multiple classes of crypto assets from traditional securities regulation.
These moves alone show that the agency has made a sharp pivot from its aggressive stance against crypto under Gensler and the Biden administration.
Atkins also reemphasized the importance of working with market participants in his address.
He pointed out the importance of Congress and the Trump administration as important for creating a “fit-for-purpose” regulatory framework for crypto assets.
However, he also pointed out that the SEC does not necessarily have to wait for new laws to start making changes.
One of the more immediate areas that Atkins aims to revisit is crypto custody.
The SEC previously had some strict rules that required investment advisers to use only “qualified custodians” for client crypto assets.
This move was bashed by speculators as an attempt from the agency to exclude most crypto-native firms from the custody business.
Now, Atkins says that the SEC will reconsider whether those custody rules need to be changed.
Overall, Friday’s crypto roundtable was just the third in a planned series of five. There will be future discussions on topics like market structure, ETFs, DeFi, CBDCs, and stablecoins.
Atkins’ message to the industry is that clear change is not coming. Instead, it is already happening.
His main priority is to replace the “enforcement-first” with a more welcoming system that offers legal clarity and encourages innovation while protecting investors.
If Atkins succeeds, the U.S. could become more and more of a leader in crypto innovation.
However, turning promises into reality will require careful handling of both political pressures and deep regulatory habits.
For now, the crypto industry is breathing a little easier under Atkins, and is watching closely to see what the SEC will do next.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.