SEC Chair Atkins Shifts Crypto 401(k) Rules Toward Clear Regulations

SEC Chair Paul Atkins has indicated a significant shift in the agency's approach to crypto and 401(k) rules, moving away from surprise enforcement actions and towards clear, reliable regulations. In a recent interview, Atkins highlighted ongoing efforts, including a crypto task force led by Commissioner Hester Peirce, and new legislation that clarifies the status of meme coins and stablecoins, which are now not considered securities. This clarification is expected to bring much-needed certainty to the market.

Atkins also mentioned the SEC's exploration of an “innovative exemption” to support tokenization while ensuring investor protection. Regarding stablecoins, he noted that oversight has been transferred to banking regulators, aligning with recent legal changes. The SEC Chair was also questioned about proposals to allow 401(k) investments in private equity and crypto. Atkins acknowledged growing interest in these areas but emphasized the need for strong safeguards and clear disclosures. He expressed openness to the idea of allowing Americans to invest in crypto through their 401(k) retirement plans, but stressed the importance of doing so carefully. “Disclosure is key, people need to know what they’re getting into,” he said, adding that he looks forward to whatever the president proposes.

The SEC will collaborate closely with the Labor Department on any developments in this area. Atkins mentioned that an executive order on the issue could be forthcoming. The Trump administration is reportedly preparing an executive order that would expand 401(k) investment options to include assets like crypto, beyond traditional stocks and bonds. Atkins noted that private markets differ significantly from public ones, particularly in terms of liquidity, and that many investors are eager to access these markets.

Atkins took over as the SEC Chair in April, pledging “a new day at the SEC.” Since assuming his role, he has reversed more than a dozen proposals from the Biden era, with more changes anticipated. Atkins has hinted at revisiting rules on executive pay disclosures, scaling back reporting requirements for private fund advisers, and potentially allowing hedge funds to hold their crypto assets. Looking ahead, Atkins stated that the SEC is moving swiftly, with significant rulemaking activity expected in the second half of 2025 as the agency continues its transition towards transparency and innovation.