SEC's New Chair Is Driving a Bold Shift Toward Crypto Innovation

SEC Chair Charts Aggressive New Course for Crypto Regulation at Third Task Force Roundtable

The U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins made his first public appearance at the third Crypto Task Force roundtable on April 25 in Washington D.C., kicking off his role with a speech focused on a new era of crypto regulation.

After thanking his colleagues and the SEC staff for the warm welcome, Chair Adams noted that he is eager to tackle the stifling issues that have plagued the agency for far too long, highlighting his keen interest in streamlining the regulatory approach to digital assets and distributed ledger technologies.

He went on to praise Commissioner Hester Peirce for her role in spearheading digital asset policy at the SEC. Chair Adams stated that Commissioner Peirce is the ideal fit to lead the effort in devising a rational regulatory framework for the crypto asset markets.

Well-known for her contributions to digital asset policy, Commissioner Peirce leads the Crypto Task Force, overseeing its initiatives and guiding its regulatory approach to digital assets. The commissioner is also known for her work on the SEC’s Office of Small Business Policy.

The new SEC chair recognized the panelists for their contributions and expertise, which will be crucial in assisting the agency in crafting a more effective regulatory approach.

Highlighting the transformative potential of blockchain innovation, Chair Adams discussed the prospect of significant improvements to the financial system from this new technology. He anticipates substantial benefits, expecting huge gains in efficiency, cost reduction, transparency, and risk mitigation.

New SEC Chair promises administrative and congressional engagement in crypto legislation

The new SEC chair went on to add that market participants engaging with this technology deserve clear regulatory rules of the road. Innovation has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.

Looking ahead, Chair Adams discussed the importance of collaborative efforts across government in establishing a rational, fit-for-purpose regulatory framework for crypto assets. He expressed his anticipation for engaging with market participants and working closely with colleagues in President Trump’s administration and Congress to achieve this goal.

The roundtable discussion, which focused largely on the practical barriers that SEC registrants face when attempting to custody digital assets in accordance with current federal securities laws, was attended by several industry figures, including Circle's President Jeremy Allaire, Block's Chief Legal Officer Sarah Cole, and Gary Cervone, Chief Legal Officer at Coinbase.

The new SEC chair invited the participants to consider whether amendments to the custody rules under the Exchange Act, Advisers Act, or Investment Company Act are necessary to account for crypto asset realities.

He also raised the question of whether the “special purpose broker-dealer” structure, which was discussed at length in the third installment of the SEC’s Investor Advisory Commission’s report on digital assets, remains viable or if a new broker-dealer regime tailored to crypto assets is needed.

Citing obvious signs from the market itself, Chair Adams acknowledged that the "current framework badly needs attention" and encouraged the participants to help provide critical guidance for shaping future rules.