Newly sworn SEC chairman Paul Atkins called for an extensive revision of the regulatory framework of the Crypto Office, warning that outdated rules and enforcement policy have suppressed innovation for years.
During the third Crypto Task Force of the SEC in Washington, Atkins, Atkins spoke that the current regulatory environment “needs a lot of attention”, which points to the urgent need for a “rational, suitable framework” that can promote responsible innovation while investors are damaged.
Atkins said in his opening comments:
“Unfortunately, innovation has been suppressed in recent years because of market and regulatory uncertainty that unfortunately the SEC has promoted.”
Atkins, who took the official office earlier this week after he was nominated by President Donald Trump and confirmed by the Senate, used his first major public appearance to give a sharp criticism of the earlier leadership of the SEC under former chairman Gary Genler.
Under Gensler, the Agency followed an aggressive “regulation by enforcement” approach, where court cases are being filed against large crypto companies, including Coinbase and Binance.
Turn the page
During the leadership of Gensler, the SEC high-profile lawsuits against digital activa companies launched, with the argument that many tokens qualified as unregistered effects. Under Interim chairman Mark Uyeda, however, the agency began to roll back various enforcement actions.
Atkins said the SEC insights would continue to collect through a series of round tables organized by its crypto task force to build a more coherent regulatory framework. The current “Know Your Custodian” Roundtable is the third of the five planned sessions aimed at shaping crypto custody guidelines and investor protection.
Returning to the SEC for his third term after he had previously served as a commissioner from 2002 to 2008, Atkins positioned himself as an avid supporter of innovation and modernization of the market.
A former Wall Street director and entrepreneur, he is recognized for his deregulating philosophy and pro-Crypto attitude and offers a stark contrast with the more confrontation approach to the previous administration compared to the industry.
Atkins said that his top priorities such as 34th chairman of the agency include facilitating capital formation, maintaining fair and orderly markets and protecting investors, while ensuring that the US remains the best and most safe place for investments and entrepreneurship.
New mandate
Atkins promised to collaborate with the congress, fellow commissioners, participants in industry and the Trump administration to draw up clear and workable rules for the digital assets sector.
He emphasized that entrepreneurs solutions for building blockchain to modernize the financial system “earn clear regulatory rules”, and emphasizes that market ambiguity hinders economic growth and innovation.
The Crypto tour tables of the SEC, led by commissioner Hester Peirce, are intended to collect insights into the industry to inform future policy -making.
During the 25 April session, the participants concentrated on crypto guardianship problems and whether existing rules under the Exchange Act, the Investment Advisers Act or the Investment Company Act should be revised to accommodate the unique functions of Blockchain Technology.
Atkins praised Peirce for its ‘principle and tireless representation of interests for common crypto policy’, and called her ‘certainly the right person to lead the effort’ to create an extensive regulatory framework for industry.
