New SEC Chair Paul Atkins Says Crypto Innovation Stifled By Past Policy, Promises Clear Rules

synopsis

Newly appointed U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins criticized the agency’s previous handling of cryptocurrency regulation, saying it created “regulatory uncertainty” that stifled innovation. 

Speaking on Friday at the SEC’s crypto roundtable in Washington, D.C. — his first public appearance since taking office earlier this week — Atkins emphasized the need for a consistent regulatory framework for digital assets.

“Market participants engaging in this technology deserve clear regulatory rules of the road,” Atkins said.

Atkins signaled a shift in tone from his predecessor, Gary Gensler, who had taken a more aggressive enforcement approach to crypto under the Biden administration. 

By contrast, Atkins suggested he would work with lawmakers to craft a more predictable and innovation-friendly policy regime.

“Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that the SEC has unfortunately fostered,” he said.

The roundtable — established under U.S. President Donald Trump, who has branded himself as the ‘Crypto President’ — was launched with the mandate to assess how securities laws apply to digital assets. 

Tensions between the crypto sector and the SEC have grown in recent years, particularly during a string of high-profile enforcement actions that some in the industry viewed as regulatory overreach.

Atkins, who has previously advised crypto firms, is widely expected to pursue a more constructive dialogue with the industry. 

Even before his appointment, the SEC had begun to ease its stance, pausing enforcement actions and moving toward drafting sector-specific rules. Since Trump’s electoral victory, there has been an influx of crypto-linked ETF applications to the SEC as well.

Despite Atikin’s optimistic take, Bitcoin (BTC) slipped by 0.8% in the past hour to trade below $95,000. Ethereum (ETH) and Ripple’s native token XRP (XRP) dipped as much as 0.7%, while Solana (SOL) and Cardano (ADA) slumped as much as 1%. 

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