The U.S. Securities and Exchange Commission (SEC) is set to reshape its approach to cryptocurrency regulation, as Chair Paul Atkins announced that policy will now be formulated through a process known as 'notice and comment.' This shift aims to move away from the previous strategy of rulemaking via legal enforcement. Speaking before the Senate Appropriations Subcommittee on Financial Services on June 3, Atkins remarked that the SEC will utilize its existing powers to establish clear standards for market participants.
Atkins, who has a background as a crypto lobbyist, prioritized developing a rational regulatory framework for crypto assets during his tenure. He acknowledged criticisms directed at former SEC Chair Gary Gensler, who was accused of imposing crypto policy primarily through lawsuits rather than through formal rulemaking.
Atkins stated, "The commission's enforcement approach will return to Congress's original intent, which is to police violations of these established obligations, particularly as they relate to fraud and manipulation." He promised to establish clear rules for the issuance, custody, and trading of digital assets, aiming to provide protection to investors against fraudulent activities.
Senator Chris Coons inquired if the SEC would allow crypto exchanges to handle both traditional securities and digital tokens. While Atkins did not give a direct response, he did mention that the agency's Crypto Task Force is actively creating regulations that will align with industry needs and foster innovation. This task force was initially established by acting SEC Chair Mark Uyeda in January to help lay the foundation for a workable crypto regulation framework.
In tandem with these developments, Atkins has sought Congressional approval to disband the SEC’s Strategic Hub for Innovation and Financial Technology, suggesting that innovation should permeate all SEC operations rather than be confined to a specific office. Since Gary Gensler's exit from the SEC in January, the agency has adopted a new strategy towards cryptocurrencies, including the dismissal of certain enforcement actions against crypto firms and an emphasis on developing guidance regarding common crypto practices, such as staking activities.
Atkins, who has a background as a crypto lobbyist, prioritized developing a rational regulatory framework for crypto assets during his tenure. He acknowledged criticisms directed at former SEC Chair Gary Gensler, who was accused of imposing crypto policy primarily through lawsuits rather than through formal rulemaking.
Atkins stated, "The commission's enforcement approach will return to Congress's original intent, which is to police violations of these established obligations, particularly as they relate to fraud and manipulation." He promised to establish clear rules for the issuance, custody, and trading of digital assets, aiming to provide protection to investors against fraudulent activities.
Senator Chris Coons inquired if the SEC would allow crypto exchanges to handle both traditional securities and digital tokens. While Atkins did not give a direct response, he did mention that the agency's Crypto Task Force is actively creating regulations that will align with industry needs and foster innovation. This task force was initially established by acting SEC Chair Mark Uyeda in January to help lay the foundation for a workable crypto regulation framework.
In tandem with these developments, Atkins has sought Congressional approval to disband the SEC’s Strategic Hub for Innovation and Financial Technology, suggesting that innovation should permeate all SEC operations rather than be confined to a specific office. Since Gary Gensler's exit from the SEC in January, the agency has adopted a new strategy towards cryptocurrencies, including the dismissal of certain enforcement actions against crypto firms and an emphasis on developing guidance regarding common crypto practices, such as staking activities.
