SEC Chair Pushes Clear Crypto Rules for Trading, Custody, and Issuance

The SEC is unleashing a new crypto era, vowing to ditch regulation-by-enforcement in favor of bold, crystal-clear rules that supercharge onchain innovation and market growth.

SEC Chair Commits to Ending Policy by Enforcement With Clear Onchain Crypto Regulations

U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins detailed his ambitious agenda for crypto asset regulation during a keynote address at the Crypto Task Force Roundtable held in Washington D.C. on May 12. Speaking before a room of stakeholders and agency officials, Atkins drew attention to the growing transition from conventional securities to blockchain-based systems:

The topic of this afternoon’s discussion is timely as securities are increasingly migrating from traditional (or ‘off-chain’) databases to blockchain-based (or ‘on-chain’) ledger systems.

He emphasized that the SEC must shift its regulatory mindset to accommodate emerging technologies and ensure that outdated policies do not impede innovation.

Atkins outlined his leadership priorities, highlighting a structured path forward for crypto asset markets centered on issuance, custody, and trading. He pledged to abandon the SEC’s reliance on unpredictable enforcement as a tool for policy development:

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,” he added. “It is a new day at the SEC. Policymaking will no longer result from ad hoc enforcement actions. Instead, the Commission will utilize its existing rulemaking, interpretive, and exemptive authorities to set fit-for-purpose standards for market participants.”

Citing the collaborative effort between Commissioners Mark Uyeda and Hester Peirce in forming the new Crypto Task Force, Atkins underscored the importance of internal cooperation to accelerate policy modernization: “For too long, the Commission has been plagued by policymaking siloes. The Crypto Task Force exemplifies how our policy divisions can come together to expeditiously provide long-needed clarity and certainty to the American public.”

He also tied the broader goal of innovation to national competitiveness: “In order for the United States to be the ‘crypto capital of the planet’ as envisioned by President Trump, the Commission must keep pace with innovation and consider whether regulatory changes are needed to accommodate on-chain securities and other crypto assets.” The SEC chairman concluded:

Rules and regulations designed for off-chain securities may be incompatible with or unnecessary for on-chain assets and stifle the growth of blockchain technology.