SEC Chair Paul Atkins Charts New Course for Crypto Regulation: More Clarity, Less Enforcement
In a major shift for U.S. crypto policy, SEC Chair Paul Atkins has laid out a new vision for digital asset regulation — one that favors clear rules over aggressive enforcement and signals a more open-door approach to innovation.
Speaking at the SEC’s fourth crypto task force roundtable on Monday, Atkins declared, “It is a new day at the SEC.” He criticized the agency’s past reliance on ad hoc enforcement actions and said regulators should no longer act as if crypto might simply “go away.”
Instead, he emphasized that the SEC will focus on using its existing legal tools — such as rulemaking and interpretive guidance — to create clear, practical standards for crypto market participants.
A Clearer Path for Crypto Issuers
Atkins announced plans to draft clearer guidelines for assets that qualify as securities or fall under the definition of an investment contract. He also called out the previous administration’s so-called “come in and talk to us” strategy as ineffective.
“The SEC claimed it was willing to talk to prospective registrants — ‘Just come in to visit’ — but this proved ephemeral at best and often disingenuous,” Atkins explained. “The agency made no necessary adaptations to registration forms for this new technology.”
This lack of clarity discouraged many firms from engaging with the SEC, leaving them in regulatory limbo.
Now, under Atkins’ leadership, the SEC aims to offer more structured pathways for crypto projects seeking compliance — not confrontation.
Custody Rules May Evolve
One of the most anticipated changes involves digital asset custody. Furthermore, Atkins hinted that current rules may need updates to allow funds and advisers to use self-custody solutions under certain conditions.
He also signaled openness to revisiting the SEC’s special purpose broker-dealer framework , which could pave the way for more tailored approaches to how crypto firms operate within existing financial infrastructure.
These potential shifts reflect a broader effort to modernize the SEC’s stance and make room for blockchain-based innovations without compromising investor protection.
Exemptive Relief Could Open Doors for New Products
Atkins also floated the idea of expanding exemptive relief — a legal tool that allows companies to bypass certain regulatory requirements — for those looking to bring new products to market.
“I would like to explore whether conditional exemptive relief would be appropriate for registrants and non-registrants that seek to bring new products and services to market that may otherwise not be compatible with current Commission rules and regulations,” he said.
This flexibility could help spur innovation by allowing startups and established players alike to test new models without fear of immediate enforcement action.
Industry Reacts Positively to New Direction
Gene Hoffman, CEO of Chia Network, praised the new direction, calling the SEC “open-minded and open for business.”
“Instead of focusing solely on risks, this SEC recognizes the significant opportunities decentralized public blockchains create for investors,” Hoffman added.
Many in the industry see this as a welcome departure from the heavy-handed enforcement approach seen under former SEC Chair Gary Gensler, who frequently warned about fraud and manipulation in the space.
What This Means for the Future of Crypto Regulation
Under Paul Atkins, the SEC appears to be moving toward a more collaborative and forward-looking approach to regulating digital assets. While investor protection remains a priority, the emphasis now seems to be on enabling responsible innovation rather than stifling it through legal uncertainty.
In conclusion, as the SEC continues to roll out new frameworks and policies, crypto firms and investors alike will be watching closely to see how this new chapter unfolds.
