crypto.news 2025-05-19 15:46:27

Crypto languished in ‘SEC limbo’ for years: Paul Atkins reaffirms crypto commitments

SEC Chairman Paul Atkins issued a sharp critique of the agency’s past crypto strategy, calling it ineffective and damaging to market trust. In a speech published on the SEC’s website, Atkins said the Commission’s previous posture—initially ignoring crypto and then relying heavily on enforcement—had failed to provide clarity and discouraged engagement from legitimate players. “It seemed like a catch-22,” Atkins said. “The message was, ‘You go figure it out.’ That environment did not create trust.” To rebuild that trust, Atkins directed the Division of Corporation Finance to engage more transparently with market participants. He emphasized that while formal crypto rulemaking is underway, interim staff guidance will continue helping firms navigate regulatory uncertainties. You might also like: DigiAsia’s stock soars on plan to allocate 50% of profits to Bitcoin SEC and their FinHub Atkins also proposed formally integrating FinHub, the SEC’s Strategic Hub for Innovation and Financial Technology, into the agency’s core operations. Once viewed as an enforcement channel, FinHub will now focus on fostering innovation and adapting rules to evolving technology. In a notable policy shift, Atkins said he supports allowing registered firms to custody and trade both securities and non-securities within a single entity. He called it an “initial step” toward a “super-app” ecosystem, where investors can access both traditional and digital financial products in one place. The speech signals a strategic pivot for the SEC, as it looks to bring clarity and consistency to crypto regulation without stifling innovation. Still, Atkins noted the agency must remain within its statutory boundaries while using its discretion to modernize oversight. “I believe we can foster innovation while remaining true to our mission,” he said. You might also like: Dow recovers from morning lows, indices nearly flat despite U.S. debt downgrade