New SEC Chairman Reiterates Call for Overhaul of Crypto Rules, Promises to End Enforcement Oversight

Source: Blockchain Knights

SEC Chairman Paul Atkins called for a comprehensive modernization of U.S. Crypto asset policy and outlined a three-part strategy for regulatory reforms on issuance, custody, and trading.

On May 12, Atkins made the above statement during a keynote speech at the SEC Crypto Asset Task Force’s latest roundtable, which explored tokenization and its potential to upgrade capital markets.

Atkins compared the transition to blockchain-based securities to the digital transformation of the music industry, and he believes that “on-chain” assets may revolutionize capital markets in the same way that MP3s reshaped the way audio is distributed.

Under Atkins' leadership, the SEC's top priority is to tailor a "reasonable regulatory framework" for the digital asset market, moving away from years of unpredictable enforcement patterns that have hampered innovation.

He pledged that policymaking will proceed through formal channels in the future, rather than taking ad hoc actions, and reiterated his recent statements.

"The SEC has ushered in a new era," Atkins said.

Three-pronged reform plan

Atkins has laid out an ambitious reform agenda focused on promoting compliant Crypto asset issuance, expanding legal custody options, and modernizing the trading framework.

He noted that only a few projects have successfully registered their offerings through the SEC's traditional pathways, citing outdated disclosure forms and legal uncertainty as major obstacles.

To address this, regulators will consider more appropriate exemptions, safe harbors, and disclosure guidelines for digital native assets. He stressed that temporary staff guidance is only temporary and that full rules by the Commission are needed to establish lasting standards.

On custody, Atkins supports the repeal of Staff Accounting Bulletin No. 121, which had taken restrictive measures on Crypto asset holdings. He called for a broader and clearer definition of what constitutes a "qualified custodian" and said custody rules should evolve over time to reflect self-custody solutions and emerging best practices in the industry.

Consolidating U.S. Leadership in Crypto

Atkins echoed President Donald Trump’s call to make the U.S. the “Crypto Capital of the World” and warned that if the SEC fails to adapt, innovation will flow overseas.

He praised Commissioner Mark Uyeda and Commissioner Hester Peirce, co-leaders of the newly formed Crypto Asset Task Force, which aims to break down internal barriers and accelerate the issuance of guidance documents throughout the agency.

In his speech, Atkins stressed the need to develop rules that both protect investors and support innovation. He emphasized that combating fraud remains a top priority, but the SEC's enforcement approach will return to its "original intention," which is to regulate violations of established obligations rather than develop policy through enforcement.