Paul Atkins aims to solidify his vision for cryptocurrency regulation in response to political changes in Washington. Speaking at a recent Managed Funds Association conference in New York, Atkins highlighted the SEC’s intent to swiftly implement rules that could secure his policies, particularly concerning public and private market regulations that may affect the crypto industry after the current presidency.

Highlights from Atkins’ Talk

In his address, Atkins expressed:

“We have, I think, an amazing opportunity to get together and, in a can-do spirit, kind of create something that’s lasting. My main concern is to future-proof this against future potential changes. What we have to do is to get things implemented, get things agreed, and then let the market work […]”
Translation: We need to put our plans into action and let the market do what it does best, while ensuring we’re prepared for potential future changes.

Atkins emphasized the importance of collaboration between the SEC and the Commodity Futures Trading Commission (CFTC) to avoid conflicts that have hindered progress for digital assets.

“As we go forward, especially with digital assets, the one thing that I am trying to warn people about is we can’t have two fortresses on either side of a no-man’s land strip…”
Translation: We can’t allow regulatory agencies to create barriers that stifle innovation in digital products.

Even prior to his confirmation as SEC chair in April, previous acting chair Mark Uyeda had shifted the SEC’s posture on digital assets significantly, including closing many long-running cases against crypto firms.

Future Implications

The potential for a different administration to quickly reverse the regulatory progress made under Atkins is a topic of concern.
As Andrew Forson noted, it would be challenging for a new SEC chair to reverse the initiatives set forth, but future administrations could introduce additional compliance burdens that might stifle innovation.

“If a less crypto-friendly administration took over, existing instruments would likely be grandfathered in, but new entrants would face significant headwinds.”
Translation: Current structures would remain, but new developments could be hindered.

Legal experts stress that while new SEC chairs could shift priorities back to enforcement against crypto entities, actual rules set under Atkins would be much harder to dismantle without broad consensus.

A continuing legislative push surrounding market structure could further complicate this landscape, underscoring the need for ongoing dialogue and consensus in the digital asset space.