U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins delivered a pointed message to lawmakers during his May 20 testimony before the House Appropriations Subcommittee on Financial Services and General Government: the agency is taking a new direction on crypto. Just weeks into his tenure, Atkins detailed an overhaul of how the SEC will approach digital asset markets, promising clarity and fairness for entrepreneurs and investors alike.
Central to Atkins’ remarks was a shift away from using enforcement actions as a primary tool to shape crypto policy. He made clear that rules will now be created through proper channels. Atkins 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.
“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,” the SEC chair added. He underscored that enforcement should be used to uphold established obligations, not invent them.
Atkins praised the SEC’s Crypto Task Force, formed earlier this year by Commissioners Mark Uyeda and Hester Peirce, as an example of internal collaboration that’s helping bring long-awaited clarity to the sector. The Task Force is charged with crafting a coherent framework to regulate crypto markets in a way that fosters innovation while protecting investors. The SEC chief explained:
The task force has held four roundtables so far on further defining security status, tailoring regulation for crypto trading, custody considerations, and tokenization. I look forward to the input from industry and additional public feedback during the next roundtable on decentralized finance.
In addition to policy development, Atkins also proposed structural changes within the SEC to integrate innovation across all divisions, including plans to disband the Strategic Hub for Innovation and Financial Technology. He argued that forward-looking policies should not be the domain of a small office but part of the agency’s broader mission. His vision signals a major philosophical and procedural shift, one that seeks to balance robust investor protections with a market environment conducive to responsible blockchain innovation.
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