In the United States, a significant change in the regulation of cryptocurrency could be underway as the newly appointed head of the SEC, Paul Atkins, has requested an entire reformation of how the agency deals with digital assets. Atkins criticized the SEC’s previous policies focused on enforcement, claiming they have dominated innovation and created unnecessary uncertainty in the markets during his first major public speech after taking office.
A Softer Approach: “Attack & Defend” Policy
“Stifling innovation while being hyper-protective will rarely achieve the intended result and, instead, damage the entire marketplace,” Atkins accused his colleagues. “After devastating impacts of restrictions from both the SEC and the pandemic, there is an urgent need to design reasonable frameworks for both enabling innovation and protecting investors.” Atkins argues that regulatory uncertainty enacted by the SEC has largely “squashed” innovation and placed arbitrary limits on the capabilities of the blockchain market.
After having been sworn in just a few days ago, Atkins, nominee of President Donald Trump, has blasted the prior leadership of the SEC under Gary Gensler. “Under Gensler, the SEC pursued an overly combative ‘regulate by enforcement’ approach, leading to spectacular lawsuits against crypto behemoths Coinbase and Binance.”
Turning the Page: Moving from Enforcement to Conversation
Under the previous administration, active litigation was central; now there is potential for dialogue and cooperation. Preparing for the next round of insights collection, held through the crypto task force’s roundtables, Atkins indicated that the SEC is willing to modify its policy construction approach. The ongoing “Know Your Custodian” roundtable, the third of five planned sessions, concentrates on strategizing crypto custody and investor protection laws.
Having served as a commissioner from 2002 to 2008 and now returned for his third term, Atkins positions himself as a unique champion of innovation and modernization of the markets.
He served as a crypto advocate, adhered to a deregulatory pro-crypto philosophy, and previously functioned as an executive on Wall Street. It is a sharp difference compared to the prior administration’s aggressive stance.
While working with Congress and industry leaders, draft clarity and optimization regulations to ensure national capital formation along with equity market liquidity. Primary goals for the newly appointed 34th SEC chairman will include market investor protection aligned with global investment captivator reputation maintenance.
“Economic growth is harmed on a detrimental level due to market ambiguity,” Atkins explained, citing unclear rules as major regulators stifling innovation while “blockchain entrepreneurs modernizing antiquated financial systems” are “building solutions” to set the economy forward.
Under the lead of Peirce, industry’s insight will influence future policy at SEC Crypto Roundtables, making Peirce policy-spearheading sessions. The council’s 25th April-dated session focused on crypto custody challenges and potential Blockappa regulation needs to modernize the Investment Regime DoA and AiD Act.
Bates complimented Peirce’s fueled “unprincipled and tireless advocacy for common-sense crypto policy… Hotting her as head.” Bastard-Doll – “sane everything make regulatory target miss please compress to boom.”
The collaboration of Atkins and Peirce indicates a potential shift in the manner the SEC regulates digital assets, focusing more on encouraging innovation and providing clearer frameworks for market participants.
