U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has announced a shift in the agency’s approach to cryptocurrency regulation. In a recent Senate subcommittee meeting, Atkins emphasized that the SEC would move away from “regulation by enforcement” and instead adopt a “notice and comment” rulemaking process. This approach allows for public input and aims to establish clear, transparent guidelines for the crypto industry.
When Atkins said the Senate Appropriations Subcommittee on Financial Services on June 3, he remarked that the agency would “do its crypto policymaking through notice and comment rulemaking, not through regulation by enforcement.”
Atkins, who took office in April 2025, is known for his advocacy of reduced regulatory burdens and support for financial innovation. In addition to co-chairing the Digital Chamber’s cryptocurrency advocacy group, the Token Alliance, he was an SEC commissioner from 2002 to 2008. Compared to the former SEC leadership under Gary Gensler, who was criticized by the crypto industry for using harsh enforcement measures, his hiring represents a substantial policy change.
Under Atkins’ direction, the SEC plans to create “fit-for-purpose” standards for market participants by utilizing its current authority. He emphasized the need for “clear rules of the road” to protect investors from fraud and manipulation, stating that such clarity is essential for identifying scams and ensuring lawful behavior in the crypto space.
Atkins also indicated that the SEC’s Crypto Task Force, established earlier this year, is working on regulations that balance industry innovation with necessary oversight. While he did not directly address questions about crypto exchanges handling both traditional securities and digital tokens, he affirmed that the task force’s forthcoming report would provide further guidance.
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