SEC Chair Paul Atkins: Regulatory Framework for Crypto Asset Markets Is ‘Key Priority’

Securities and Exchange Commission (SEC) Chairman Paul Atkins said Monday (May 12) that the commission must consider regulatory changes to accommodate on-chain securities and other crypto assets.

In a keynote address delivered at the Crypto Task Force Roundtable on Tokenization, Atkins said that rules and regulations designed for off-chain securities may stifle the growth of blockchain technology and that the commission aims to contribute to the United States becoming the “crypto capital of the planet” as envisioned by President Donald Trump.

“A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody and trading of crypto assets while continuing to discourage bad actors from violating the law,” Atkins said, per a transcript posted by the SEC. “Clear rules of the road are necessary for investor protection against fraud — not the least to help them identify scams that do not comport with the law.”

Atkins added that the SEC will no longer use ad hoc enforcement actions to make policy; instead, it will use its rulemaking, interpretive and exemptive authorities to set standards for market participants and then police violations of those obligations.

Outlining three areas of focus for crypto asset policy, Atkins said he intends for the SEC to establish guidelines for distributions of crypto assets that are securities or subject to an investment contract; provide registrants with greater optionality in determining how to custody crypto assets; and allow registrants to trade a broader variety of products on their platforms in response to market demand.

“While the commission and its staff work to develop a comprehensive regulatory framework for crypto assets, securities market participants should not be compelled to go offshore to innovate with blockchain technology,” Atkins said. “I would like to explore whether conditional exemptive relief would be appropriate for registrants and non-registrants that seek to bring new products and services to market that may otherwise not be compatible with current commission rules and regulations.”

Atkins is no stranger to the SEC, as he served as a commissioner under President George W. Bush, PYMNTS reported in January. At the time of his nomination by Trump, Atkins was known to hold pro-cryptocurrency leanings, a marked change from his predecessor.

Shortly after his nominated was confirmed, Atkins sharply criticized the regulatory direction taken under the Biden Administration and pledged to tackle the “long festering issues” surrounding digital assets and blockchain technology.