SEC's New Chair Atkins Promises Clear Crypto Rules, Criticizes Gensler's Approach

Newly confirmed United States Securities and Exchange Commission (SEC) Chair Paul Atkins outlined his vision for the agency's approach to the digital asset industry during his first crypto roundtable on April 25. Atkins emphasized the need for clear regulatory rules to foster innovation, criticizing the previous administration's approach under Gary Gensler, which he described as fostering market and regulatory uncertainty.

Atkins stated, “Market participants engaging with this technology deserve clear regulatory rules of the road. Innovation has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.” He expressed his commitment to working with market participants, the administration, and Congress to establish a rational and fit-for-purpose regulatory framework for crypto assets.

Atkins' remarks came just days after his swearing-in ceremony, where he pledged to apply a rational, coherent, and principled approach to cryptocurrencies. His appointment is seen as a pro-crypto move, with reports indicating his personal investment in digital assets. The SEC's Crypto Task Force, launched in January, aims to develop a comprehensive and clear regulatory framework for crypto by collaborating with the public.

During the roundtable, Atkins praised SEC Commissioner Hester Peirce for her advocacy of common-sense crypto policy. He highlighted Peirce's leadership in the Crypto Task Force, stating, “Commissioner Peirce is the right person to lead the effort to come up with a rational regulatory framework for crypto asset markets.” The roundtable discussions focused on custody rules and regulations, marking the first such event featuring Atkins as a panelist.

Atkins' approach signals a departure from Gensler's regulation-by-enforcement strategy, which has been criticized for creating uncertainty in the digital asset industry. His focus on clear and balanced rulemaking is expected to provide a more stable regulatory environment, potentially encouraging innovation and investment in the sector. The SEC's efforts under Atkins' leadership are aimed at fostering a rational and coherent regulatory framework that supports the growth of the digital asset industry while protecting investors.