In brief
- SEC Chair Paul Atkins said Tuesday the agency will prioritize "clear rules of the road" for crypto.
- He testified that investor protection and innovation require regulatory clarity.
- But some lawmakers are pushing for the CLARITY Act to shift oversight away from the SEC.
U.S. Securities and Exchange Commission Chair Paul Atkins is continuing on his crusade to bring a “new day” to the SEC and shift the agency's stance toward digital assets.
Testifying before the Senate Appropriations Subcommittee on Financial Services and General Government on Tuesday, Atkins vowed to pursue a "rational regulatory framework" for crypto assets, prioritizing rulemaking and transparency over enforcement actions.
“Clear rules of the road are necessary for investor protection against fraud—not the least to help them identify scams that do not comport with the law,” he said.
“Policymaking will be done through notice and comment rulemaking, not through regulation-by-enforcement,” Atkins added.
Atkins, a veteran of the SEC, was confirmed in April after a lengthy and partisan nomination process.
His return marks a stark departure from the approach taken by his predecessor, Gary Gensler, whose tenure was marked by enforcement actions against crypto firms and a broad interpretation of securities laws that made him unpopular with the crypto industry.
Crypto Rules Top Paul Atkins’ SEC Agenda Ahead of Committee Hearing
Paul Atkins, the Trump administration’s pick to lead the Securities and Exchange Commission, said regulation of crypto will be a top priority if confirmed as chairman. In prepared remarks ahead of a confirmation hearing Thursday morning before the Senate Committee on Banking, Housing, and Urban Affairs, Atkins took aim at “ambiguous and non-existent” digital asset regulation that has hindered market growth. “Since 2017, as I have led industry efforts to develop best practices for the digital ass...
Since Gensler’s exit, the SEC has dropped several high-profile lawsuits, first under interim chair Mark Uyeda and then under Atkins, and has issued guidance for multiple categories of crypto, including exempting certain staking activities from securities regulation.
The agency's evolving posture comes amid growing momentum in Congress to strip the SEC of its authority over crypto altogether.
Last week, lawmakers introduced the CLARITY Act, which would amend securities laws to exempt most crypto assets from SEC jurisdiction and establish a new legal framework.
“Our bill secures American dominance, democratizes digital assets, unleashes innovation, and protects consumers from fraud,”Rep. Bryan Steil (R-WI), chair of the House’s Financial Services Subcommittee, said at the time.
SEC Chair Paul Atkins Slams Gensler Regime for 'Stifling' Crypto Innovation
Newly sworn-in SEC Chair Paul Atkins gave his first full address Friday, praising the Commission’s recent pro-crypto work in his absence, and condemning the agency’s previous moves against the industry under previous Chair Gary Gensler and the Joe Biden administration. “Market participants engaging with this technology deserve clear regulatory rules of the road,” Atkins said of crypto, from the agency’s Washington headquarters. “Innovation has unfortunately been stifled for the last several yea...
Democratic staffers on the House Financial Services Committee have criticized the SEC for withholding an impact analysis of the bill, raising concerns that the proposal could create loopholes for traditional finance under the guise of blockchain adoption.
Atkins acknowledged the shifting legislative landscape but emphasized the role of the SEC's new Crypto Task Force and upcoming DeFi roundtable in supporting innovation.
"I anticipate benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation," he said.
Edited by Sebastian Sinclair
