Former SEC Chair Atkins Urges 'Rational' Crypto Rules for a New Era of Regulation

Atkins Vows to Pursue "Rational Regulatory Framework" for Crypto at SEC

Paul Atkins, the newly confirmed Chair of the U.S. Securities and Exchange Commission (SEC), has pledged to prioritize rulemaking and transparency over enforcement actions in regulating the crypto industry. Testifying before the Senate Appropriations Subcommittee, Atkins emphasized the importance of clear rules to protect investors against fraud, stating that "policymaking will be done through notice and comment rulemaking, not through regulation-by-enforcement."

Atkins' approach marks a stark departure from the previous administration, led by Gary Gensler, whose tenure was characterized by a series of enforcement actions against crypto firms and a broad interpretation of securities laws that drew criticism from the industry. Under Atkins' leadership, the SEC has already dropped several high-profile lawsuits and issued guidance for multiple categories of crypto, including exempting certain staking activities from securities regulation.

The agency's evolving stance comes amid growing momentum in Congress to limit the SEC's authority over crypto. Last week, lawmakers introduced the CLARITY Act, which would amend securities laws to exempt most crypto assets from SEC jurisdiction and establish a new legal framework. However, Democratic staffers have raised concerns about the potential for loopholes in the proposal.

Atkins acknowledged the shifting legislative landscape but emphasized the role of the SEC's new Crypto Task Force and upcoming DeFi roundtable in supporting innovation. "I anticipate benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation," he said.

As the SEC navigates the complex and rapidly evolving crypto landscape, Atkins' commitment to a "rational regulatory framework" will be closely watched by both the industry and investors alike.