SEC Chair Paul Atkins told a Senate subcommittee that the SEC’s approach to crypto policy will be through notice – and – comment rulemaking, rather than regulation by enforcement. This marks a significant shift in the SEC’s regulatory approach to digital assets.
Atkins has emphasized the need to create a “rational regulatory framework for crypto assets”. He plans to use the SEC’s existing rule – making, interpretation, and exemption authorities to set standards for market participants. The SEC will focus on establishing “clear rules of the road” for the issuance, custody, and trading of crypto, while also cracking down on illegal acts such as fraud and manipulation.
This change in approach is a departure from the previous chair Gary Gensler’s tenure, which was criticized by the crypto industry for shaping policy through lawsuits and settlements rather than rule – making. Under Atkins, the SEC has taken steps such as dismissing long – running enforcement actions against crypto firms and releasing guidance stating that common crypto staking activities do not violate securities laws. These actions signal the SEC’s intention to provide more regulatory clarity and stability to the crypto industry.
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