SEC Chair Prioritizes Crypto—Trading, Custody, Issuance Rules Incoming

CN
1 day ago

U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins placed the regulation of digital assets at the forefront of his June 3 testimony before the Senate Appropriations Subcommittee on Financial Services and General Government. Addressing lawmakers in Washington, D.C., Atkins made clear that building a structured, lawful foundation for crypto markets will be a defining feature of his leadership. He stated:

A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.

He linked the absence of a clear framework to increasing risks, adding: “That lack of regulatory framework also invites fraud.”

Atkins highlighted the agency’s new Crypto Task Force, created under the interim leadership of Commissioner Mark Uyeda and now led by Commissioner Hester Peirce. The task force has already hosted four public roundtables focused on foundational crypto policy issues—security definitions, trading oversight, custody, and tokenization. He noted that a fifth session would address decentralized finance (DeFi), citing its growing relevance in global markets. Atkins underscored that this initiative is meant to end the fragmented, reactive approach to crypto oversight that has hindered innovation and investor protection alike.

The SEC chairman called Commissioner Peirce a “principled and tireless advocate for common-sense policy,” and emphasized that the Commission’s work must encourage innovation without compromising enforcement.

Atkins closed his testimony with a call for regulatory reform grounded in transparency and due process, rejecting the enforcement-first posture that has previously drawn criticism from industry stakeholders. He made clear the SEC’s policy direction going forward:

Policymaking will be done through notice and comment rulemaking not through regulation-by-enforcement.

“The Commission will utilize its existing authorities to set fit-for-purpose standards for market participants. The Commission’s enforcement approach will return to Congress’ original intent, which is to police violations of these established obligations, particularly as they relate to fraud and manipulation,” he affirmed.

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