SEC's Atkins Calls for Clear Crypto Rules to Boost Innovation

On April 25, 2025, newly appointed SEC Chairman Paul Atkins delivered a critical assessment of the Gary Gensler Administration during the SEC Crypto Task Force Roundtable in Washington, D.C. Atkins highlighted regulatory uncertainty as a significant barrier to innovation in the cryptocurrency market over the past few years. He emphasized the need for a clear regulatory framework, stating that the lack of defined rules has impeded the progress of the crypto industry.

Atkins' comments suggest a potential shift in the SEC's stance towards digital assets, aiming to foster a more innovation-friendly environment. The roundtable discussion focused on how market participants can safely engage with crypto assets under existing federal securities laws. Atkins thanked attendees for their expertise and contributions to addressing these pressing issues.

In his speech, Atkins criticized the SEC's past policies for creating regulatory ambiguity, which he believes has hindered the growth of blockchain technology and digital assets. He stated that the market has been held back by unclear regulations, which the SEC has unfortunately promoted. Atkins expressed his intention to work with industry stakeholders and Congress to implement a practical regulatory environment for crypto assets. He also proposed revising existing Exchange Act rules to recognize the unique attributes of blockchain technology.

Atkins praised Commissioner Hester Peirce for her work in developing sound crypto policy and her impact on the SEC. He highlighted her role in creating a balanced approach to regulating the securities market. The SEC's position on digital currency has already begun to shift, with the agency withdrawing Staff Accounting Bulletin 121 in January 2025. This decision removed a significant barrier to institutional adoption of digital assets, which Peirce celebrated.

In February 2025, the SEC reiterated that most meme coins do not meet the requirements for classification as securities under U.S. law. This clarification has benefited several crypto projects, including meme coins linked to President Donald Trump. Atkins acknowledged that there is still much work to be done in the crypto industry. He questioned the viability of the current “special purpose broker-dealer” regime for crypto market participants and suggested that a new framework may be necessary to support industry growth.

Atkins made it clear that the SEC intends to maintain regulation of corporations based in other countries. Firms that do not meet U.S. regulations could face delisting. This approach aims to balance innovation with regulatory oversight. With Atkins at the helm of the SEC, there is a renewed focus on clarity and innovation, which could lead to a stronger, more open digital asset market in the United States.