The U.S. Securities and Exchange Commission (SEC) is set to revamp its approach to crypto regulation, moving away from enforcement-led tactics and instead prioritizing rulemaking through a public “notice and comment” process, according to SEC Chair Paul Atkins.
Speaking before the Senate Appropriations Subcommittee on Financial Services on June 3, Atkins emphasized that the SEC will no longer define crypto policy primarily through courtroom battles.
“Policymaking will be done through notice and comment rulemaking, not regulation by enforcement,”
he said.
The shift marks a clear departure from the approach taken under former Chair Gary Gensler, whose tenure was marred by criticism from the crypto industry over the SEC’s reliance on litigation and settlements to dictate policy. Atkins, a former crypto lobbyist, pledged a more transparent and collaborative path forward.
He stated that the SEC will rely on its existing authorities to set “fit-for-purpose standards” tailored to the unique dynamics of the crypto market. Among the agency’s priorities under his leadership is the development of a “rational regulatory framework” for digital assets.
During the hearing, Democratic Senator Chris Coons questioned Atkins on whether he would support allowing crypto exchanges to handle both digital tokens and traditional securities. Atkins sidestepped the question, saying only that the SEC’s Crypto Task Force is working on regulations that balance investor protection with innovation.
The Crypto Task Force, established in January by then-acting SEC Chair Mark Uyeda, has been tasked with crafting a workable policy framework for digital assets. Atkins noted that its first report is expected in the coming months.
In a further indication of internal restructuring, Atkins revealed plans to disband the SEC’s Strategic Hub for Innovation and Financial Technology, also known as FinHub. Created in 2018 to support fintech initiatives, FinHub’s mission, he said, should be embedded across the entire agency rather than isolated within a single office.
With these changes, the SEC, under the leadership of Chairman Atkins, aims to establish a more predictable and innovation-friendly regulatory environment for crypto, while strengthening enforcement against clearly defined violations.
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