The SEC is taking a new approach to cryptocurrency regulation under its new chair, Paul Atkins. Atkins’ recent comments represent a significant departure from the previous administration’s stricter stance.
A Friendlier Approach to Crypto
In a speech at the SEC’s Crypto Task Force roundtable, Atkins highlighted the potential benefits of digital assets, emphasizing their potential to improve efficiency, reduce costs, and increase transparency within the financial system. He directly criticized the SEC’s previous approach, stating that regulatory uncertainty has stifled innovation. This is a stark contrast to the previous chair, Gary Gensler, who oversaw numerous enforcement actions against major crypto firms. Since Gensler’s departure, many of these cases have been closed.
Seeking Input for Regulatory Reform
Atkins is now actively seeking input from the crypto community on how to update existing securities laws to better accommodate crypto and blockchain technology. He specifically raised questions about whether changes are needed to custody rules and broker-dealer frameworks to better suit the unique characteristics of the crypto market. He acknowledged that the current framework is inadequate for the needs of the industry.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct thorough research before making any investment decisions.
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