The SEC chair, Paul Atkins, has criticized Gary Gensler’s approach to cryptocurrency regulation and defended the concept of self – custody. Here are the details:
Gensler’s Stringent Crypto Policies
Gary Gensler’s tenure at the SEC was marked by a tough stance on the crypto industry. He classified most digital tokens as securities and urged companies to register under existing regulations. Gensler took this approach to protect investors from fraud, scams, and market manipulation in the volatile crypto market. However, his policies received criticism, with some arguing that they stifled innovation and created obstacles for the industry.
Atkins’ Criticism and Defense of Self – Custody
Criticism of Gensler’s Policies: In a recent round – table event exploring digital asset regulation, Paul Atkins said that the SEC’s previous approach under Gensler was heavy – handed and created market and regulatory uncertainty. Atkins pledged to adopt a more rational and coherent approach to foster innovation.
Defense of Self – Custody: Atkins called the right to self – custody a “foundational American value”. He is in favor of giving market participants more flexibility to self – custody crypto assets. Atkins believes that intermediation may impose unnecessary transaction costs or restrict the ability to engage in staking and other on – chain activities. Self – custody empowers individuals to directly control their digital assets by managing their own private keys, reducing the risk of hacking, third – party failures, and potential asset freezes.
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