Paul Atkins Ushers in New Crypto Era at SEC, Breaking from Gensler’s Legacy
In a sweeping shift that signals a major policy realignment, newly appointed U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins declared Monday that the agency is embarking on a new, more transparent regulatory path for digital assets.
Appointed by former President Donald Trump, Atkins introduced his strategic vision during the SEC’s fourth crypto task force roundtable. His comments confirmed a definitive pivot away from the enforcement-heavy approach under former Chair Gary Gensler.
“This is a new day at the SEC,” Atkins announced. “We’re moving beyond enforcement-first policymaking. Our goal now is to establish clear, tailored standards through rulemaking, interpretation, and exemption processes.”
Long recognized as a crypto-friendly voice, Atkins has expressed optimism about blockchain innovation and pledged to work closely with legislators to develop a regulatory environment that fosters growth while protecting investors. This contrasts sharply with Gensler’s view, who often characterized the crypto industry as plagued by fraud and misconduct. Under Gensler’s leadership, the SEC launched numerous high-profile cases against crypto companies, though many were dismissed after his departure earlier this year.
Atkins criticized the prior administration’s handling of industry outreach, calling it “a head-in-the-sand approach” that discouraged meaningful dialogue. He noted that promises to work with firms interested in registration were often hollow, as the SEC failed to modernize its systems for emerging technologies.
“The invitation to ‘just come in and talk’ was more illusion than reality,” Atkins remarked. “The agency didn’t adapt its forms or procedures to accommodate innovation.”
Looking ahead, Atkins revealed that updated guidance on digital assets — particularly those considered securities or investment contracts — will be a top priority. He also suggested that rules around asset custody might be revised to allow for self-custody by funds and advisers under certain circumstances.
Another potential area of reform includes the SEC’s special purpose broker-dealer framework. Atkins said the Commission will evaluate whether conditional exemptions could be appropriate for entities developing new products that don’t fit neatly into existing regulatory models.
“We must consider granting tailored relief for innovators — both registrants and non-registrants — when rigid regulations impede progress,” Atkins said.
With Atkins at the helm, the SEC appears poised to reshape its relationship with the crypto sector — aiming for regulatory clarity rather than confrontation.