SEC Chairman Paul Atkins Commits to Abandoning Enforcement Strategy Towards Building Transparent Regulations, Balancing Investor Protection and Blockchain Innovation.
The Chairman of the United States Securities and Exchange Commission (SEC) Paul Atkins has signaled an important turning point in the approach to managing the cryptocurrency market by committing to abandon the aggressive enforcement strategy in favor of building a clear and reasonable legal framework. This statement was made during the hearing on May 20th before the House Budget Allocation Subcommittee on Financial and Government Services, just a few weeks after his appointment.
"One of the key priorities in my tenure is to build a reasonable legal framework for the crypto asset market – establishing clear rules for the issuance, custody, and trading of digital assets, while continuing to prevent legal violations by bad actors," Atkins emphasized in his speech.
From Suppression to Transparency
A highlight of the new SEC strategy is the commitment to abandon the use of enforcement actions as a primary policy tool. According to Atkins, future regulations will be developed through official regulatory channels, rather than imposed through lawsuits and penalties.
"Clear rules are necessary to protect investors from fraudulent behavior – especially helping them recognize fraud models that do not comply with legal regulations," he added, emphasizing that enforcement should only be used to enforce established obligations, not to arbitrarily create rules.
Atkins also expressed support for the SEC's Crypto Task Force, established earlier this year by commissioners Mark Uyeda and Hester Peirce. According to him, the task force has organized four roundtable discussions around important topics such as: redefining the concept of "securities", regulating crypto trading, digital asset custody issues, and tokenization.
"I look forward to input from the industry and public feedback in the next roundtable on decentralized finance (DeFi)," Atkins explained.
In addition to policy development, the SEC Chairman also proposed internal structural changes, including dissolving the Strategic Hub for Innovation and Financial Technology – the office currently responsible for fintech innovation initiatives. Instead, he proposed integrating technological innovation into all units of the commission, reflecting the view that future policies should not be the responsibility of a small office, but should become part of the SEC's overall mission.
This change marks a significant shift in the SEC's approach to the crypto market, promising to create a more transparent and fair legal environment for both founders and investors in the blockchain and digital asset space.
