Washington, D.C., April 25, 2025— During an address a few weeks ago, newly appointed SEC Chairman Paul Atkins did not hold back on his assessment of the Gensler administration. On the very same day, April 25, Atkins mentioned that lack of clear regulation is a major obstacle that he believes has stifled progress and innovation within the crypto world for the past several years. These remarks suggest that Atkins hopes to provide a clear deciding shift in guidance from the agency under his leadership.
Atkins Slams Gensler
Atkins did not mince his words while talking about the former SEC’s leadership and remarked that “without rules, progress is practically nonexistent.”
In his account, the past four years have been marked with “no new development,” which paints a picture of the regulatory approach during the last administration, which seems to have lacked any real drive for advancement in the digital asset space.
Innovation Stifled
Atkins laid to rest any doubts regarding the impact of previous policies on the enhancement of new products and services in the crypto market. He adds, “The past few years have faced a lack of innovation because of the well-known uncertainty around the market and regulatory boundaries, which the SEC unfortunately has been one of the sponsors.” In repeating the idea later on, he said, “The crypto market has been restrained due to a lack of clear regulations that the SEC promotes, not supports.” These statements make it abundantly clear that there is blame aplenty for the stagnation born out of the ambiguity of regulations defined by the previous SEC administration.
In his speech, Chairman Atkins set forth a distinct utopian summary of a regulatory framework for crypto assets to be defined on. He said that he hopes to partner with industry leaders as well as congressmen to attain this particular aim, suggesting more engagement with stakeholders.
Rule Revision Needed
Atkins set forth a flexible regulatory approach designed for crypto assets, considering he is looking for a practical one at the moment. Additionally, he remarked that some rules encompassed in the Exchange Act ought to be revised. It would be modified, he claims, for the sole purpose of appreciating blockchain technology and all of its dimensions.
Market Context
Atkins’ remarks come at a time when the industry is slowly recovering from years of stagnation coupled with renewed interest from markets. As per Reuters, the increase in Bitcoin’s prices over the last 24 months, hitting nearly $100,000 in December 2024, ascertained the need for a supportive development and regulatory framework to be put in place to foster continued growth and acceptance.
Praise for Peirce
This marks favorable conditions for the change at the SEC. Exiting the agency might enable greater deals establishing Peirce’s policies and initiative framework.
During his remarks, Atkins also praised Commissioner Hester Peirce for her work in championing reasonable crypto policy. He noted her contribution towards achieving equilibrium in the regulation of the securities market and how she shaped the SEC’s view of digital assets.
Withdrawal of SAB 121
With new leadership in place, the SEC seems to be changing its stance. A prominent example is the agency’s withdrawal of Staff Accounting Bulletin 121 (SAB 121) in January 2025. SAB 121 necessitated banks to categorize customer crypto assets as liabilities on their balance sheets. This was viewed as a major obstacle to institutional adoption. Peirce fiercely championed the bulletin’s withdrawal.
Position on Meme Coins
In February 2025, the SEC confirmed that the majority of meme coins do not meet the criteria to be classified as U.S. securities. This has, as claimed by many, greatly benefited several crypto initiatives. This also includes Trump-affiliated meme coins like the $TRUMP coin, which supposedly holds a $2.7 billion market cap. The SEC’s position also closed the curtain on ambiguity for this side of the market.
Global Reach and Future Strategies
Chairman Atkins said there is still a lot to be done regarding the complete framework for crypto. He critiqued the notion of a ‘special purpose broker-dealer’ license as possible for other participants in the crypto market and questioned the current regulatory environment. He proposed that a distinct, tailored structure might be needed to aid in the expansion of the industry.Aside from domestic oversight, Atkins pointed out that the SEC plans to continue monitoring non-U.S. corporations providing services to American investors.
Non-compliant firms, including Chinese ones, could risk being delisted. He characterized this balance as being sufficiently innovative while still heavily regulated. Atkins seems particularly eager to restore the agency’s connection with the crypto sector. His emphasis on clear guidance and promoting innovation could improve the posture of the U.S. digital asset market.
