SEC Veteran Paul Atkins Demands Crypto Rule Overhaul—’End the Innovation Stranglehold’
Former SEC commissioner Paul Atkins slams the agency’s crypto approach as regulatory overreach—calling for urgent reforms to unlock blockchain’s potential.
’Years of haphazard enforcement are choking innovation,’ argues Atkins, now a key industry advocate. His push comes as crypto firms flee the U.S. for friendlier jurisdictions.
Wall Street veterans nod along—while quietly shorting the very tokens they claim to support. Some things never change.
Turning the page
During Gensler’s leadership, the SEC launched high-profile lawsuits against digital asset firms, arguing many tokens qualified as unregistered securities. However, under interim chair Mark Uyeda, the agency began rolling back several enforcement actions.
Atkins said the SEC would continue gathering insights through a series of roundtables organized by its crypto task force to build a more coherent regulatory framework. The ongoing “Know Your Custodian” roundtable is the third of five planned sessions focused on shaping crypto custody guidelines and investor protections.
Returning to the SEC for his third term after previously serving as a commissioner from 2002 to 2008, Atkins positioned himself as a staunch advocate for innovation and market modernization.
A former Wall Street executive and entrepreneur, he is recognized for his deregulatory philosophy and pro-crypto stance, offering a stark contrast to the previous administration’s more confrontational approach toward the industry.
Atkins said that his top priorities as the agency’s 34th chairman include facilitating capital formation, maintaining fair and orderly markets, and protecting investors, while ensuring the US remains the best and most secure place for investment and entrepreneurship.
New mandate
Atkins pledged to collaborate with Congress, fellow commissioners, industry participants, and the Trump administration to draft clear and workable rules for the digital asset sector.
He stressed that entrepreneurs building blockchain solutions to modernize the financial system “deserve clear regulatory rules,” emphasizing that market ambiguity hinders economic growth and innovation.
The SEC’s crypto roundtables, spearheaded by Commissioner Hester Peirce, are intended to gather industry insights to inform future policymaking.
During the April 25 session, participants focused on crypto custody issues and whether existing rules under the Exchange Act, the Investment Advisers Act, or the Investment Company Act need to be revised to accommodate blockchain technology’s unique features.
Atkins praised Peirce for her “principled and tireless advocacy for common-sense crypto policy,” calling her “certainly the right person to lead the effort” to create a comprehensive regulatory framework for the industry.
