The new SEC Chair Paul Atkins is shaking things up in crypto – and it’s about time. During his first public appearance at a cryptocurrency roundtable in Washington, D.C., Atkins made it crystal clear that the days of regulatory confusion are numbered. Finally, someone at the SEC gets it.
After years of what many viewed as heavy-handed enforcement and murky guidelines, Atkins is pushing for what he calls a “rational fit-for-purpose framework” for the cryptocurrency sector. Let that sink in. The same agency that spent years playing whack-a-mole with crypto companies now wants to create clear, practical rules. Talk about a plot twist. Understanding market cap calculations helps assess the impact of these regulatory changes on crypto valuations.
Finally, the SEC shifts from playing crypto cops to creating sensible rules – a welcome change for the industry.
And here’s the kicker – Atkins isn’t waiting around for Congress to act. While he’s happy to work with lawmakers, he’s made it clear the SEC has enough flexibility under current regulations to start making changes now. That’s quite a departure from the previous leadership’s “regulate-by-enforcement” approach that left crypto firms feeling like they were maneuvering through a minefield blindfolded.
The new chair believes innovation in the digital asset space has been “stifled for the last several years” due to regulatory uncertainty. No kidding. He’s particularly interested in revisiting the specialized crypto broker-dealer category, citing Prometheum as an example of success in this rarely used registration type. His commitment to investor protection initiatives remains a cornerstone of his regulatory vision.
One of the thorniest issues Atkins is tackling head-on is crypto custody. The previous administration wanted rules that would effectively shut most crypto platforms out of the qualified custodian category. Commissioner Hester Peirce wasn’t kidding when she described crypto firms facing a “lava pit” of unclear regulation.
Atkins expects “huge benefits” from market innovation, including improved efficiency and reduced costs. He’s betting that by providing a firm regulatory foundation for digital assets, the U.S. can become a global leader in crypto innovation.
After years of regulatory whiplash, the crypto industry might finally have someone at the SEC who speaks their language.
