U.S. Securities and Exchange Commission Chair Paul Atkins is continuing on his crusade to bring a “new day” to the SEC and shift the agency's stance toward digital assets.
Testifying before the Senate Appropriations Subcommittee on Financial Services and General Government on Tuesday, Atkins vowed to pursue a "rational regulatory framework" for crypto assets, prioritizing rulemaking and transparency over enforcement actions.
“Clear rules of the road are necessary for investor protection against fraud—not the least to help them identify scams that do not comport with the law,” he said.
“Policymaking will be done through notice and comment rulemaking, not through regulation-by-enforcement,” Atkins added.
Atkins, a veteran of the SEC, was confirmed in April after a lengthy and partisan nomination process.
His return marks a stark departure from the approach taken by his predecessor, Gary Gensler, whose tenure was marked by enforcement actions against crypto firms and a broad interpretation of securities laws that made him unpopular with the crypto industry.
Since Gensler’s exit, the SEC has dropped several high-profile lawsuits, first under interim chair Mark Uyeda and then under Atkins, and has issued guidance for multiple categories of crypto, including exempting certain staking activities from securities regulation.
The agency's evolving posture comes amid growing momentum in Congress to strip the SEC of its authority over crypto altogether.
Last week, lawmakers introduced the CLARITY Act, which would amend securities laws to exempt most crypto assets from SEC jurisdiction and establish a new legal framework.
“Our bill secures American dominance, democratizes digital assets, unleashes innovation, and protects consumers from fraud,”Rep. Bryan Steil (R-WI), chair of the House’s Financial Services Subcommittee, said at the time.
Democratic staffers on the House Financial Services Committee have criticized the SEC for withholding an impact analysis of the bill, raising concerns that the proposal could create loopholes for traditional finance under the guise of blockchain adoption.
Atkins acknowledged the shifting legislative landscape but emphasized the role of the SEC's new Crypto Task Force and upcoming DeFi roundtable in supporting innovation.
"I anticipate benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation," he said.
Edited by Sebastian Sinclair
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