SEC Chairman Paul Atkins called for a comprehensive modernization of U.S. crypto asset policy and outlined a three-part strategy for reforming issuance, custody, and trading regulations.
Atkins made the comments during his keynote address at the SEC’s Crypto Assets Task Force’s latest roundtable on May 12, which explored tokenization and its potential to upgrade capital markets.
Atkins likens the transition to blockchain-based securities to the digital transformation of the music industry, arguing that “on-chain” assets could revolutionize capital markets in the same way that MP3s reshaped audio distribution.
Under Atkins’ leadership, the SEC’s top priority is to tailor a “reasonable regulatory framework” for the digital asset market, moving away from years of unpredictable enforcement that has hampered innovation.
He pledged that policy making would go forward through formal channels rather than ad hoc action, reiterating his recent comments.
“This is a new era for the SEC,” Atkins said.
Three-pronged reform plan
Atkins has laid out an ambitious reform agenda focused on promoting compliant issuance of crypto assets, expanding legal custody options, and modernizing the trading framework.
He noted that only a handful of projects have successfully registered their offerings through the SEC’s traditional route, citing outdated disclosure forms and legal uncertainty as major obstacles.
To address this issue, regulators will consider formulating more appropriate exemptions, safe harbor rules and disclosure guidelines for digital native assets. He emphasized that temporary staff guidance is only temporary and that the Commission needs to formulate complete rules to establish lasting standards.
On the custody side, Atkins supports the repeal of Staff Accounting Bulletin No. 121, which had taken restrictive measures on holding crypto assets. He called for a broader and clearer definition of what constitutes a "qualified custodian" and said custody rules should keep pace with the times to reflect self-custody solutions and emerging best practices in the industry.
On the trading side, Atkins expressed support for allowing broker-dealers to offer comprehensive services including crypto assets and non-crypto assets on a unified platform. He also raised the possibility of conditional exemption relief to allow the launch of new types of products that may not yet comply with existing rules.
Strengthening the U.S. leadership in the Crypto space
Atkins echoed President Donald Trump’s call to make the U.S. the “crypto capital of the world,” warning that if the SEC fails to adapt, innovation will flow overseas.
He praised Commissioner Mark Uyeda and Commissioner Hester Peirce, who co-lead the newly formed Crypto Assets Task Force, which aims to break down internal silos and speed up guidance across the agency.
In his speech, Atkins stressed the need to develop rules that both protect investors and support innovation. He stressed that combating fraud remains a top priority, but the SEC's enforcement approach will return to its "original purpose," which is to regulate violations of established obligations rather than to make policy through enforcement.
The SEC is expected to continue to advance additional rulemaking, staff guidance, and interagency coordination in the coming months as it seeks to establish the United States as a leader in tokenized financial infrastructure.
