SEC Chairman Paul Atkins Announces Plans to Allow Registered Firms to Handle Both Securities and Non-Securities

SEC Chairman Paul Atkins announced plans to allow registered firms to handle both securities and non-securities, including digital assets

The U.S. Securities and Exchange Commission (SEC) is planning to allow registered firms to handle both securities and non-securities, including digital assets, within a single regulatory framework, according to Chairman Paul Atkins.

Speaking at the SEC Speaks conference in Washington D.C. on May 19, 2025, Atkins said this approach could reduce investor costs and bring digital asset markets into a regulated environment.

The proposal marks a shift in the agency’s stance toward cryptocurrency and other emerging financial technologies.

Atkins: Firms Should Handle Securities, Crypto “Under One Roof”

Registrants should be permitted to custody and trade all asset classes “under one roof.”

Atkins stated that combining these functions could pave the way for a future “super-app” structure that merges traditional and decentralized financial services.

The announcement follows growing demand for a consistent approach to handling crypto and tokenized assets. While details remain under development, Atkins confirmed that the staff is actively preparing draft rule proposals.

SEC to Move Beyond ‘Shoot-First' Crypto Enforcement, Adapt Rules

Atkins criticized the SEC’s earlier “shoot-first-and-ask-questions-later” strategy as a barrier to progress. He acknowledged that past engagement with crypto firms often led to subpoenas rather than solutions, undermining trust in the regulatory process.

To change that, he directed the Division of Corporation Finance to maintain transparent communication with the public and industry participants.

The chairman emphasized the need for the SEC to adapt its rules when existing frameworks fail to reflect modern technology. He cited previous innovations — including the launch of SPDR ETFs and Reg ATS for trading systems — as examples of how regulatory flexibility can foster market evolution.

He also referenced recent FAQs from the Division of Trading and Markets, which offer practical insights to broker-dealers and transfer agents operating in the crypto space.

FinHub Functions To Be Absorbed Across the SEC

Atkins confirmed that the SEC will dismantle FinHub, the agency’s innovation-focused office, and integrate its functions into other departments.

Established in 2018 to address blockchain and digital assets, FinHub had come to be viewed by some as an enforcement tool rather than a support mechanism.

Atkins argued that its small size limited its usefulness and that staff expertise would be better distributed agency-wide.

Atkins: SEC Must Not Resist Market Innovation, Change is Constant

The chairman said the decision aligns with a broader goal of embedding innovation into the SEC’s culture rather than isolating it within a niche unit.

He also thanked the Crypto Task Force and Commissioner Hester Peirce for their continued contributions to crypto policy discussions.

Atkins closed by stating that the SEC must no longer resist change.

“The markets innovate,” he said, “and the SEC should not be in the business of telling them to stand still.”

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