SEC Chair Atkins Advocates for Innovative Crypto Regulations

New SEC Chairman Paul Atkins has signaled a major shift in U.S. cryptocurrency regulation, criticizing the previous enforcement-heavy approach and pledging to foster domestic innovation through clearer, more collaborative policies. Atkins emphasized the need to replace outdated rules with a rational, fit-for-purpose framework tailored to digital assets, with SEC Commissioner Hester Peirce leading these efforts due to her reputation as the 'crypto mom.' The SEC is focusing on modernizing custody rules and addressing regulatory uncertainty, aiming to encourage growth in the digital assets market rather than pushing it abroad. Recent actions include dropping several high-profile lawsuits and rolling back regulations that hampered institutional adoption, such as Staff Accounting Bulletin 121. Industry leaders and SEC officials at a recent roundtable welcomed the new direction, underscoring the urgency of adapting standards to match rapid technological advancements. This pivot aligns with broader political support for the crypto sector, which played a significant role in recent elections and policy shifts.