SEC Chair Atkins Signals Regulatory Shift, Pledges to Make U.S. “Crypto Capital of the Planet”

In a remarkable pivot from his predecessor’s stance, Securities and Exchange Commission Chair Paul Atkins declared Monday his intention to establish a clear regulatory framework for cryptocurrency markets, signaling what industry observers are calling a watershed moment for digital assets in the United States.

“We are embarking on a new day,” Atkins stated during the SEC’s first-ever public crypto roundtable, according to Crypto Potato. “We aim to make the United States the crypto capital of the planet.”

The roundtable, which brought together industry leaders, academics, and regulatory experts, marked a significant departure from the enforcement-heavy approach that characterized the SEC under former Chair Gary Gensler. Atkins emphasized that blockchain technology “holds promise for new kinds of market activity,” as reported by Cointelegraph.

In his opening remarks, Atkins outlined several key priorities, including developing clear rules for crypto tokens and establishing a regulatory framework that balances innovation with investor protection. “The Commission has a responsibility to provide regulatory clarity to market participants while protecting investors,” Atkins said, according to Reuters.

This shift in regulatory philosophy comes as the cryptocurrency industry has faced years of uncertainty regarding which digital assets qualify as securities under U.S. law. Atkins acknowledged this challenge, stating that the SEC plans to “create new rules for crypto tokens” that would provide much-needed clarity, as reported by Reuters.

However, not all commissioners share Atkins’ enthusiasm for a more accommodating approach. Commissioner Caroline Crenshaw expressed concerns about what she characterized as “government picking winners and losers,” according to Decrypt. This internal disagreement highlights the ongoing debate within the agency about how to regulate the rapidly evolving crypto landscape.

Industry stakeholders have responded positively to Atkins’ comments. Caitlin Long, CEO of Custodia Bank, shared her optimism on social media platform X (formerly Twitter), noting that “this is what regulatory clarity looks like,” in response to the SEC’s announcement of the roundtable.

The SEC’s pivot comes amid growing competition from other jurisdictions that have established clearer regulatory frameworks for digital assets. As reported by PYMNTS, Atkins acknowledged this challenge, stating that a “regulatory framework for crypto-asset markets is a key priority” for his tenure.

According to Axios, the SEC is considering several approaches, including potential rule changes that would clarify when digital assets are considered securities and when they fall outside the agency’s jurisdiction.

The roundtable also addressed concerns about investor protection, with Atkins emphasizing that any regulatory framework must balance innovation with safeguarding retail investors. “We can have both innovation and investor protection,” he stated, as reported by Coin Gape.

As the SEC embarks on this new regulatory direction, market participants are cautiously optimistic that clearer rules could unleash a new wave of innovation in the U.S. crypto industry. However, the path forward remains complex, with significant challenges in crafting regulations that address the unique characteristics of blockchain technology and digital assets while fulfilling the SEC’s mandate to protect investors.

The agency has not provided a specific timeline for when new rules might be proposed, but Atkins indicated that developing a comprehensive framework is among his top priorities as chairman.