SEC’s Paul Atkins Takes Helm—Crypto Markets Breathe Sigh of Relief

Wall Street’s revolving door spins again as ex-banker Paul Atkins assumes key SEC role—just as crypto claws back from its latest ’extreme risk’ classification by the suits upstairs.

Regulatory thaw incoming? Industry insiders spot early signs of a pragmatic shift: fewer enforcement theatrics, more focus on clear rules. Even Bitcoin maximalists grudgingly admit the appointment could defuse tensions.

But let’s not pop champagne yet. Remember 2023’s ’crypto spring’ that froze over when the Fed hiked rates? This time, the market’s betting on regulatory clarity—not free money—to fuel the next rally. (Spoiler: Wall Street still doesn’t get blockchain, but they’ll front-run the ETFs anyway.)

SEC Focuses on Crypto Custody Challenges

Just days after taking office, Atkins led the SEC’s third crypto roundtable. The main topic: custody of digital assets. Atkins said crypto needs better rules around who holds digital assets for investors. He questioned whether current “special-purpose broker-dealer” models are enough.

The roundtable gave crypto firms a real voice. Veronica McGregor of Exodus said the atmosphere already feels less hostile. She noted that under Atkins, fears of false accusations have eased. Still, there is much work to be done. Upcoming SEC roundtables will dive deeper into tokenization and decentralized finance.

Crypto Industry Expects Big Changes at the SEC

Crypto leaders are optimistic about Atkins’ approach. Chris Perkins from CoinFund said the “regulatory reign of terror” is ending. He predicted a “golden age” where venture capital and developer activity will explode.

Katherine Dowling from Bitwise Asset Management echoed that sentiment. She stressed that Atkins isn’t killing regulation; he’s bringing clarity. Cases are being dropped or reassessed not because rules are disappearing, but because they need to be better defined.

James Gernetzke from Exodus added that companies can now work with regulators “on a reasonable basis.” Access to capital markets should improve, and more companies could pursue IPOs without fear. Confidence is clearly rising across the board.

Atkins Pushes for Immediate Action

Atkins doesn’t want to wait for Congress to act. Speaking at the SEC’s headquarters, he said the agency already has “ample room to maneuver.” New crypto policy can start even before lawmakers pass new laws.

He emphasized that while congressional input is welcome, the SEC must act now. Atkins pointed out that under his leadership, the agency will rethink outdated custody rules. The focus is on adjusting regulations to fit blockchain’s unique structure.

This proactive attitude marks a major change. Under former chair Gary Gensler, the SEC often clashed with crypto firms. Now, the industry sees an SEC that wants to cooperate, not just enforce.

The Future of Crypto Regulation Under the SEC

The road ahead looks promising. The SEC crypto task force, led by Commissioner Hester Peirce, will continue to hold key discussions. Peirce, long known as “Crypto Mom,” supports Atkins’ drive for smarter crypto policy.

Atkins’ ties to the crypto world also offer hope. He has advised major crypto companies and understands the industry’s challenges. His goal is clear: build a strong but fair foundation for crypto growth.

In short, the SEC under Paul Atkins is set to transform the regulatory landscape. By bringing clarity, reducing fear, and encouraging innovation, the agency is finally giving the crypto industry the chance to thrive.