In a striking public address, current SEC Chairman Paul Atkins denounced his predecessor Gary Gensler’s regulatory approach to digital assets, specifically criticizing the SEC’s past stance on self-custody and decentralized finance. Speaking at a policy roundtable titled “DeFi and the American Spirit,” Atkins argued that self-custody isn’t just a technical feature—it’s a core American liberty.
Atkins emphasized that former SEC leadership, under Gensler, often relied on enforcement rather than legislation to regulate crypto, a method he said stifled innovation and blurred legal clarity.
“The right to hold your own assets shouldn’t be controversial,” he stated.
“It’s a principle rooted in American financial tradition.”
He underscored the importance of giving users the freedom to manage their digital assets without being forced through intermediaries. Atkins believes this flexibility is essential for enabling secure participation in staking, on-chain finance, and emerging crypto infrastructure.
Particularly alarming, he said, was the SEC’s prior assertion that developers of self-custody wallet software could be considered brokers—a claim Atkins described as regulatory overreach. He urged lawmakers to deliver clear legislative frameworks to prevent unelected agencies from imposing arbitrary limits on crypto innovation.
SEC Crypto Roundtables End With Few Clear Answers
The event led by Atkins marks the fifth—and possibly final—installment of the SEC’s 2025 crypto roundtable series, an initiative launched by Commissioner Hester Peirce and the agency’s crypto task force. Throughout the year, the roundtables explored issues such as token classification, custody rules, decentralized protocols, and the intersection of tokenization and traditional finance.
Despite months of high-level dialogue, consensus on regulatory clarity remains elusive.
Commissioner Caroline Crenshaw acknowledged the complexity of establishing concrete rules in such a fast-evolving sector.
“These roundtables have given us a lot to grapple with,” she said. “While it was branded as a ‘spring sprint toward crypto clarity,’ I’m not sure we’ve clarified much that’s simple or actionable.”
No further crypto-specific roundtables are currently scheduled on the SEC’s public calendar. With industry participants calling for actionable guidance, the regulatory path forward seems more marathon than sprint.
Under Atkins, SEC Signals Softer Crypto Enforcement Posture
Since the departure of former SEC Chair Gary Gensler and the return of Donald Trump to the White House, the SEC appears to be shifting its tone toward digital assets.
Under Atkins, the agency has taken steps suggesting a more restrained enforcement posture. In February, the SEC unexpectedly withdrew its lawsuit against Coinbase—a case once seen as a cornerstone of Gensler’s crypto agenda. A month later, Ripple CEO Brad Garlinghouse confirmed that the SEC had also dropped its planned appeal in the long-running Ripple case, effectively closing one of the agency’s most prominent enforcement actions.
This softening stance coincides with pending leadership changes at both the SEC and the Commodity Futures Trading Commission (CFTC). Several commissioners are expected to step down or reach the end of their terms, creating opportunities for broader regulatory realignment.
Attention now turns to the Senate Agriculture Committee, which is set to review President Trump’s nomination of Brian Quintenz as the next CFTC Chair. Quintenz is widely regarded as crypto-friendly, known for supporting innovation during his previous tenure. If confirmed, his appointment could solidify a more favorable federal outlook on digital assets across multiple agencies.
Quick Facts
- SEC Chair Paul Atkins called self-custody a core American right.
- He criticized past enforcement-first crypto policy under Gary Gensler.
- The SEC’s 2025 crypto roundtable series may have concluded.
- Lawsuits against Coinbase and Ripple have been dropped under Atkins.
- Brian Quintenz has been nominated to lead the CFTC under Trump.
