Securities and Exchange Commission Chair Paul Atkins has declared a shift in the SEC’s strategy regarding crypto assets, focusing on transparent and participatory rulemaking aimed at protecting investors. He noted the challenges posed by unclear regulations that hinder innovation in the digital asset space.

During his testimony before the US Senate Appropriations Subcommittee on Financial Services, Atkins remarked:

“How we implement regulations at the SEC is crucial; it is one thing to write a regulation, quite another for it to achieve its intended goal.”

Key Announcement:

Atkins stated a new approach to crypto policy:

1. Priority to public rulemaking rather than enforcement-led strategies.
2. Establishing a clear regulatory framework for crypto asset issuance, custody, and trading.
3. Encouraging feedback from the public before finalizing regulations.

Atkins believes that this change is essential for fostering innovation and improving clarity for crypto firms after years of uncertainty under previous policies. He credited the SEC’s newly formed Crypto Task Force as a significant step in overcoming past silos in policymaking.

“For too long, the Commission has been hindered by policymaking silos. The Crypto Task Force exemplifies how our policy divisions can come together to provide much-needed clarity to the American public.”

Recent Developments:

The SEC Crypto Task Force has already convened four roundtables on critical topics like defining securities, regulating crypto trading, and custody issues, with a particular focus now on decentralized finance (DeFi).

As Atkins emphasized:

“Entrepreneurs across the United States and around the world are harnessing blockchain technology to modernize aspects of our financial system.”

Key Takeaways:

• The SEC is moving away from regulatory enforcement towards constructive rulemaking.
• This approach aims to enhance collaboration with the crypto industry while ensuring investor protection.