As the Securities and Exchange Commission (SEC) embarks on a new era of crypto regulation, Chairman Paul Atkins outlines his vision for a rational and fit-for-purpose framework. The agency’s approach to crypto policy is poised to undergo significant changes under Atkins’ leadership.
The Securities and Exchange Commission (SEC) has long been at the forefront of regulating digital assets in the United States. In his first public appearance as chairman, Paul Atkins outlined his vision for the agency’s approach to crypto policy, emphasizing the need for a rational and fit-for-purpose framework.
Paul Atkins is an American businessman and former Commissioner of the U.S. Securities and Exchange Commission (SEC).
He served as a Commissioner from 2002 to 2008, during which he focused on improving corporate governance and financial reporting.
Prior to his SEC tenure, Atkins was a senior executive at Goldman Sachs and later became CEO of Patomak Global Partners, a consulting firm.
His career has been marked by significant contributions to the field of finance and regulatory policy.
Rethinking Crypto Special-Purpose Broker Dealers
Atkins suggested that the agency may reconsider the concept of special-purpose crypto broker dealers, which has been little-used but prominent in the industry. He noted that this registration process has been successful and may need to be revisited to accommodate growing demand for digital assets.
The SEC’s approach to crypto policy has undergone significant changes under Atkins‘ leadership. As interim chairman Mark Uyeda reversed or sidelined several crypto policy efforts, Atkins aims to provide a firm regulatory foundation for the industry. His experience advising and investing in digital asset firms has equipped him with the expertise needed to navigate this complex landscape.
Custody Rules and Blockchain Technology
Atkins also acknowledged that custody rules need to be adapted to accommodate crypto assets and blockchain technology. The agency’s previous efforts to approve a policy requiring investment advisers to use qualified custodians have been put on ice, pending congressional action. However, Atkins indicated that the SEC can move forward with existing authorities while awaiting new laws.
The agency’s stance on crypto custody has been a contentious issue, with some arguing that it would stifle innovation and growth in the industry. Under Atkins‘ leadership, the SEC aims to strike a balance between regulatory clarity and market flexibility.
A New Era for Crypto Regulation
Atkins‘ first public event as chairman marked a significant turning point in the agency’s approach to crypto policy. As he embarks on his tenure, it remains to be seen how the SEC will navigate this complex landscape. One thing is clear, however: Atkins‘ experience and expertise make him well-equipped to lead the agency into this new era of crypto regulation.
