SEC Chair Paul Atkins has promised to make the agency’s approach to cryptocurrency regulation radically different. He guarantees that he will transition to formal policymaking rather than use ad-hoc enforcement actions. Atkins’ stated priorities as Chairman include encouraging innovation and protecting investors. He provides a rhetorical echo of President Donald Trump’s objective to make the U.S. the “crypto capital of the planet.” These statements were reported on May 12, 2025, at 9:28 pm UTC.
Atkins stressed an extraordinary change in the policymaking. It will now happen through more typical channels, putting an end to what he referred to as “regulation by enforcement.” He cautioned that without a change in course, innovation would continue to move overseas. He further compared the transition to blockchain-based securities to the music industry’s digital revolution.
Crypto Task Force and Unified Platforms
Atkins lauded the leadership of newly seated Commissioners Mark Uyeda and Hester Peirce over the Commission’s new Crypto Task Force. The task force will be a tool to dismantle internal siloes and speed up uniform guidance throughout the agency. Atkins expressed support for allowing broker dealers provide integrated services across crypto and non-crypto assets under unified platforms.
Atkins claimed that “on-chain” assets have the potential to transform capital markets like MP3s transformed the distribution of music. He pointed to the importance of developing regulations that guard investors without stifling innovation. We hope this approach brings the much-needed exchange of clarity and direction to spur responsible innovation and development to the digital asset ecosystem.
Reassessing Accounting Treatment
Joe Atkins opposed the repeal of Staff Accounting Bulletin No. 121 (SAB 121). This bulletin previously imposed hardline prohibitions on the use, handling and maintenance of crypto holdings. The rescission of SAB 121 is intended to ease compliance burdens on financial institutions that maintain digital assets on behalf of their customers. The action is part of a larger initiative to adopt a more friendly regulatory approach, particularly towards the wider crypto ecosystem.
Atkins pronounced, “It’s a new day at the SEC. Temporary or not, this statement is a remarkable shift in the agency’s tone on digital assets. His comments indicate a shift toward a more collaborative and future-oriented approach toward regulation.
Balancing Innovation and Protection
Atkins’ keynote was a wonderful compliment to the SEC’s evident enthusiasm for promoting innovation. It further underscores their commitment to shielding investors in the ever-shifting crypto space. The new paradigm aims to protect public health and safety while fostering innovation and encouraging responsible development of this promising industry. The SEC’s overarching goal is to provide a regulatory framework that fosters innovation, maintains market integrity, and protects investors.
