In one of his public events after being sworn in as the new chair of the U.S. Securities and Exchange Commission (SEC) on April 21, Paul Atkins spoke during the agency’s third roundtable talk concerning cryptocurrency regulation. The “Know Your Custodian” event happened on April 25. This was an opportunity for the new head of the fundamentally authoritative financial body to express his thoughts on the ever-changing landscape of digital assets.
Noting Blockchain’s Advantage
Chair Atkins, in particular, remained optimistic about the technology underpinning cryptocurrencies during his address. He emphatically claimed that he expected “huge benefits” from the application of blockchain technology. Atkins highlighted benefits such as the efficiency of financial processes and even risk management, with the addition of cost savings and the transparency of processes. His acknowledgment indicates potential optimism towards the usefulness of blockchain from the SEC’s top leadership.
Striving for More Defined Regulations
A significant item that Chairman Atkins underscored was the aim to provide “clear regulatory rules of the road” as far as digital assets are concerned. This ruling indicates intent to shift about and lend greater focus towards removing grey areas.
As highlighted by the source, Atkins seemed to suggest that the previous approach of the agency under the tenure of Chair Gary Gensler may have contributed to the confusion markets and regulators faced. This, in turn, suggests a need for some form of an industry framework that is much more straightforward and simpler to navigate than what currently exists.
Forming Collaborations Towards a Framework
Chair Atkins seemed to hint at a willingness to collaborate on the construction of the prospective regulatory framework governing crypto assets. He made it very clear that he meant to engage with all relevant parties and branches of government.
Atkins seems to make clear the statement, “I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational fit-for-purpose framework for crypto assets,” illustrating how robustly he intends to bring industry perspective, as well as cooperate within the executive and legislative branches.
Politics and Industry Response
The remarks made by Atkins in conjunction with his nomination have critics claiming that it signals, for better or for worse, a revision in the administration’s crypto approach, likely designed to fulfill pre-election promises to roll back regulations after former Chair Gensler unexpectedly resigned on Trump’s Inauguration Day.
Alongside furious supporters, the industry has also ascribed to the narrative that partisan lawmakers attacked the nominee, probing him regarding his connections and biased affiliations with the industry.
Responses from industry actors seem bullish. Veronica McGregor, Chief Legal Officer at Exodus, where she participated in the roundtable, shared her insights with Cointelegraph on the 24th of April.
McGregor noted, “With the evolution in our business model, we realize that we need to be less concerned about being accused of things that we are not doing, like being broker-dealers for securities.”
“From my point of view, it is just a less scary regulatory environment in general. Those still do not mean that we do not know the x in the end regs crypto; they are going to be.” These ideas suggest less tension, though uncertainty still persists from new regulations.
Planned Future Engagements
As part of issuing new regulations, the SEC’s crypto task force will continue active discussions with the industry. From my head, two more roundtables are set in May and June, focusing on tokens and decentralized finance (DeFi).
In her leading role on the task force, Commissioner Hester Peirce reportedly told Cointelegraph in March that what drew her in was working with Atkins to ‘reorient the agency,’ suggesting more industry-friendly regulations might be on the table.
Also for policymaking on the set framework, private meetings with firms dealing in digital assets have been reported over the task force. These meetings shed light on the purpose of the new management of gathering as much information as possible while dealing with the pending issues straddling the SEC.
