Earlier this week, Paul Atkins was sworn in as SEC Chair. This begins the third official term he’s served with the agency. Shortly after the Senate confirmed Atkins, he got right to work defining his priorities. To his credit, he seems intent on laying out unambiguous regulatory guardrails for the crypto market and updating the rules on custody. He stressed the point of overcoming regulatory uncertainty that has hampered innovation in the blockchain ecosystem.
Atkins Acknowledges Congressional Support and Advocates for Clear Crypto Policy
Atkins blurred the lines on his first day on the job. He congratulated and thanked Commissioner Pierce for her steadfast defense of sensible cryptocurrency policies in the U.S. He certainly embraced the possibility of working together with Congress, recognizing the power of legislative support in bolstering the SEC’s work.
"It's always good to have Congress's input; if there's a statute to back up what we're doing, I think that's all the better." - Paul Atkins
He emphasized that entrepreneurs who are taking advantage of blockchain technology should have a clear regulatory environment in which to thrive and innovate responsibly.
Modernizing Custody Rules and Fostering Innovation
One major priority for Atkins is the reform of outdated custody rules. In this context, he asked the right questions about the need to modernize the rules and guidance provided under both the Exchange Act and Advisors Act. This indicates a willingness—or desire—to revisit current rulemaking to prepare for the changing world of digital assets.
Regulatory uncertainty, says Atkins, has done more in recent years to stifle innovation. He wants to provide more regulatory predictability and transparency as blockchain-based financial services developments and innovations continue to emerge.
"I expect huge benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation. 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." - Paul Atkins
Addressing Regulatory Ambiguity for Blockchain
Clear regulatory certainty is absolutely essential to unleashing the promise of blockchain technology, said Atkins. He thinks that if there are clear guidelines, it will make responsible development easier and bring in more players to the market.
Atkins sees great benefits coming from innovation in the markets, such as greater efficiency, lower cost, more transparency and better risk management. His steadfastness in establishing unambiguous regulatory guidelines, which is aimed at ushering in these benefits all the while protecting investors, should not be overlooked.
