SEC's Crypto Overhaul Aims to Bridge Traditional and Digital Finance

The U.S. Securities and Exchange Commission (SEC) has unveiled a comprehensive regulatory agenda in its spring 2025 session, outlining sweeping changes to cryptocurrency regulations. The proposals, led by SEC Chair Paul Atkins, aim to modernize the agency’s approach to digital assets by reducing compliance burdens and providing greater clarity for market participants. Central to the agenda are initiatives to establish “safe harbors” for crypto offerings, amend the Exchange Act to accommodate crypto trading on national securities exchanges and alternative trading systems, and revise broker-dealer financial responsibility rules [1].

The agenda includes approximately 20 proposed rule changes, many of which signal a shift from an enforcement-driven approach to one that supports innovation and market efficiency [2]. The SEC emphasized that these changes align with the goal of creating a regulatory environment that is “smart, effective, and appropriately tailored” within statutory authority. Among the key proposals, the agency aims to redefine custody requirements under the Investment Advisers Act of 1940, which governs how digital assets are held and reported [1].

The regulatory overhauls reflect a broader policy shift following the resignation of former SEC Chair Gary Gensler in January 2025. Under Atkins’ leadership, the SEC has withdrawn numerous enforcement actions from the previous administration, including lawsuits against major crypto exchanges. The agency has also permitted the New York Stock Exchange and NASDAQ to offer spot Bitcoin and Ethereum trading, a move that has contributed to rising cryptocurrency prices [2]. The shift has been interpreted as a response to the Trump administration’s pro-crypto stance, which has further accelerated the sector’s growth [3].

Beyond digital assets, the SEC is also focusing on reducing compliance burdens for public companies, particularly in the context of shareholder proposals. The agency has indicated a willingness to reconsider the Consolidated Audit Trail system, which has faced industry pushback over data security and cost concerns. These broader reforms are part of the SEC’s broader strategy to enhance transparency while lowering regulatory friction for investors and market participants [3].

The proposed rule changes will undergo a formal adoption process, including public comment periods and commission votes. While the timeline remains fluid, the SEC has signaled that the first proposals may emerge in coming months. Industry stakeholders have welcomed the agenda as a step toward tailored regulation that fosters integration between traditional finance and the crypto sector [1]. However, questions remain regarding how the new rules will be interpreted and enforced, particularly given the rapid pace of innovation in the digital asset space.

Source:

[1] SEC’s U-turn on crypto leaves key questions unanswered (https://cointelegraph.com/news/sec-revamp-crypto-rules-proposed-agenda)

[2] SEC Unveils New Rulemaking Plan to Reform Crypto Regulation (https://watcher.guru/news/sec-unveils-new-rulemaking-plan-to-reform-crypto-regulation)

[3] SEC Outlines Sweeping Crypto Rule Reforms Under Atkins Leadership (https://www.blockhead.co/2025/09/05/sec-outlines-sweeping-crypto-rule-reforms-under-atkins-leadership/)