New SEC Chair Paul Atkins has unveiled a bold recalibration of the agency’s approach to digital asset regulation, promising a more structured and transparent framework for the crypto industry. Speaking at the SEC’s fourth Crypto Task Force Roundtable on Monday, Atkins declared an end to regulation through enforcement and pledged a rule-based path forward.
“It is a new day at the SEC,” Atkins said.
“Policymaking will no longer result from ad hoc enforcement actions. Instead, the Commission will utilize its existing rulemaking, interpretive, and exemptive authorities to set fit-for-purpose standards for market participants.”
Appointed by President Donald Trump, Atkins positioned his regulatory agenda as a commitment to clarity, innovation, and investor protection. His plan includes reforms focused on token issuance and crypto custody—two longstanding areas of ambiguity within U.S. securities law.
The remarks come at a pivotal time for the digital asset sector, which has been lobbying for comprehensive regulatory clarity amid surging institutional adoption and shifting federal policy debates.
Atkins Rebukes Past SEC Approach, Vows Practical Crypto Guidelines
Atkins is signaling a sharp departure from the enforcement-first philosophy that defined the SEC under his predecessor, Gary Gensler. Known for his more open stance toward blockchain innovation, Atkins reiterated his commitment to developing a framework that fosters responsible growth without stifling innovation.
At the roundtable, he offered a direct critique of past SEC behavior:
“It claimed that it was willing to talk to prospective registrants—‘just come in and visit’—but this proved ephemeral at best and more often disingenuous because the SEC made no necessary adaptations to registration forms for this new technology,” Atkins said.
He pledged to issue concrete guidance on how digital assets should be classified under securities law—particularly in cases involving investment contracts. His comments reflect longstanding frustration from industry leaders who say previous attempts to engage the SEC were met with legal ambiguity and outdated requirements.
Under Gensler’s leadership, the SEC brought numerous enforcement actions against high-profile crypto firms. Many of those cases were quietly resolved or abandoned following his departure in January. Atkins’ new direction promises a more collaborative regulatory environment—something both startups and institutional players have long advocated.
SEC Signals Openness to Custody Reform and Product Innovation
Atkins also addressed the urgent need to modernize custody rules, specifically indicating that the SEC would explore how registered investment advisers could potentially engage in self-custody of digital assets under specific conditions. The move acknowledges the evolving role of decentralized finance and tokenized asset management.
He also suggested that the agency may expand the “special purpose broker-dealer” framework and issue conditional exemptions for novel products that fall outside current regulatory classifications.
“We should consider whether exemptions could be responsibly structured to accommodate novel products and services that might otherwise conflict with current rules,” Atkins stated.
Industry voices welcomed the SEC’s change in tone. Gene Hoffman, CEO of Chia Network, said:
“This leadership is open-minded and open for business. Instead of focusing solely on risks, the agency now acknowledges the enormous opportunities that decentralized public blockchains offer to investors.”
Quick Facts
- SEC Chair Paul Atkins has pledged to end “regulation through enforcement” and provide formal rulemaking for digital assets.
- Atkins criticized the previous administration’s failure to adapt existing frameworks for emerging technologies.
- The SEC will explore updates to custody regulations and potential exemptions for new digital asset products.
- Industry leaders praised the agency’s more open, innovation-focused posture.
