SEC Chair Emphasizes Need for Clear and Rational Regulatory Framework for Crypto

The U.S. Securities and Exchange Commission (SEC) is signaling a major shift in its approach to crypto regulation, with Chairman Paul Atkins outlining a move away from aggressive enforcement tactics toward a more structured and transparent regulatory framework. Speaking on May 20 before the House Appropriations Subcommittee on Financial Services and General Government, Atkins indicated that the SEC intends to prioritize rulemaking over reactionary crackdowns.

Just weeks into his leadership, Atkins emphasized that the SEC will now pursue policies aimed at fostering innovation in the digital asset space while protecting investors. He highlighted that his administration would focus on establishing clear, rational guidelines for the issuance, custody, and trading of crypto assets. Rather than using enforcement actions to shape policy, Atkins noted that these tools should serve to uphold existing laws—not create new ones.

He further explained that regulatory clarity is essential for investor protection, especially in identifying fraudulent schemes that fall outside legal parameters.

Atkins also praised the efforts of the SEC’s recently established Crypto Task Force, led by Commissioners Mark Uyeda and Hester Peirce. According to him, the task force is playing a crucial role in crafting a unified regulatory approach, having already hosted roundtables on key issues such as asset classification, trading frameworks, custody, and tokenization. He expressed anticipation for further input, particularly in the upcoming discussion on decentralized finance (DeFi).

As part of broader reforms, Atkins proposed integrating innovation into every division of the SEC, rather than confining it to a specialized unit. He suggested disbanding the Strategic Hub for Innovation and Financial Technology, arguing that forward-looking regulation should be embedded in the agency’s overall strategy.

This shift marks a new chapter in the SEC’s handling of crypto markets—one that aims to balance investor safeguards with a supportive environment for technological advancement.

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