SEC Chair Paul Atkins Unveils Plan to Introduce New Crypto Regulations

Highlights:

• SEC Chair commits to clear crypto regulations for issuance, custody, and trading.
• Atkins plans to collaborate with lawmakers to create a positive crypto framework and clarify rules.
• His approach contrasts with Gensler’s enforcement-heavy stance on crypto regulation.

Paul Atkins, the new Chair of the U.S. Securities and Exchange Commission (SEC), reiterated his commitment to establishing clear crypto regulations during a roundtable hosted by the agency on May 12. The “Tokenization: Moving Assets Onchain: Where TradFi and DeFi Meet” event brought together top figures from the crypto industry. Among them were Fidelity’s Digital Asset Management Head Cynthia Lo Bessette, Robinhood Crypto’s General Manager Johann Kerbrat, and Token Asset Coalition Director Johnny Reinsch.

Chairman Paul Atkins' remarks at the Crypto Task Force roundtable on tokenization:

The topic of this afternoon’s discussion is timely as securities are increasingly migrating from traditional (or “off-chain”) databases to blockchain-based (or “on-chain”) ledger systems.

— U.S. Securities and Exchange Commission (@SECGov) May 12, 2025

New Rules for Cryptocurrency Issuance, Custody, and Trading

Atkins, supportive of crypto, expects “huge benefits” from digital assets. He aims to work with lawmakers on a positive crypto framework. This contrasts with former SEC Chair Gensler, who warned of fraud and manipulation in the industry. During Gensler’s time, the SEC targeted major crypto firms, many of which had cases dropped after his departure in January.

Atkins stated he intends to establish clear rules for assets classified as securities or “investment contracts.” He criticized SEC Chair Gary Gensler’s strategy of urging companies to come in and discuss compliance. Atkins called it a “head-in-the-sand” method, hoping crypto would go away. He said only a few projects have registered through the SEC’s old methods. He pointed to outdated forms and legal uncertainty as big barriers. To fix this, the SEC may offer safe harbors, clear disclosures, and special rules for digital assets. Atkins added that current staff guidance is only temporary. The SEC must create full rules for long-term clarity. 

Atkins said custody rules might need updating to allow self-custody for funds and advisers in some cases. He also mentioned the SEC could change its “special purpose broker-dealer framework.”

Atkins supported removing Staff Accounting Bulletin No. 121, which made it harder to manage crypto holdings by imposing strict custody and accounting rules. He also wants custody rules to include new solutions, like self-custody, where individuals or companies keep their own crypto safely. He believes these rules should also follow the best new practices in the industry.

For trading, Atkins agreed with allowing broker-dealers (firms that help buy and sell assets) to offer both crypto and regular assets on the same platform. He also mentioned the idea of giving special permission for new types of products that don’t fit the current rules yet.

He said:

“I would like to explore whether conditional exemptive relief would be appropriate for registrants and non-registrants that seek to bring new products and services to market that may otherwise not be compatible with current Commission rules and regulations.”

Atkins Urges SEC to Adapt and Protect Crypto Innovation in the United States

Atkins agreed with Trump’s idea to make America the “crypto capital.” He warned that if the SEC doesn’t adapt, innovation will move overseas. Atkins praised Commissioners Mark Uyeda and Hester Peirce for taking charge of the newly formed Crypto Task Force aimed at accelerating regulatory guidance. He emphasized the need for the SEC to develop clear rules that both safeguard investors and support technological innovation. 

Atkins stressed that fraud is a priority, but the SEC will focus on following rules, not creating new ones through enforcement. “Clear rules of the road are necessary for investor protection against fraud, not the least to help them identify scams that do not comport with the law,” he added.