Paul Atkins, the newly appointed Chair of the U.S. Securities and Exchange Commission (SEC), has announced a sweeping initiative to modernize the regulatory landscape for cryptocurrencies. In a keynote speech during an SEC roundtable event on Monday, Atkins emphasized his intention to use the Commission’s authority under existing securities laws to build a clearer and more rational framework for digital assets.
Paul Atkins outlined his three-pronged approach—focused on the issuance, custody, and trading of crypto assets—as the cornerstone of his agenda. “The commission has broad discretion under the Securities Acts to accommodate the crypto industry, and I intend to get that done,” he declared. His plan aims to clarify how digital assets can be legally offered to the public, securely stored, and traded on compliant platforms. The move comes in response to long-standing demands from the digital asset industry for transparent and workable rules under U.S. law.
Clarifying Issuance, Redefining Custody, and Expanding Trading Options
In discussing issuance, Paul Atkins said the SEC would seek to support compliant fundraising for crypto projects by outlining clear exemptions for assets that don’t qualify as securities, and by providing straightforward registration guidelines for those that do. He pointed out the importance of setting clear standards for what constitutes an investment contract, an area that has historically generated legal uncertainty for token issuers.
On the matter of custody, Atkins said he favors expanding the ways digital assets can be securely held on behalf of clients. He proposed updating the definition of “qualified custodians” to include more types of firms and to reflect practices common in the crypto space. He also suggested providing exemptions to certain custody rules, allowing greater flexibility for asset managers and funds.
Notably, Paul Atkins indicated that under certain conditions, advisors and investment funds might be permitted to self-custody crypto assets. He cited the need to revisit the SEC’s rules around special purpose broker-dealers to make them more aligned with the needs of the evolving digital asset ecosystem.
When it comes to trading, Atkins advocated for allowing regulated platforms to handle a broader range of products, including both securities and non-security tokens. This approach could create a more seamless and compliant environment for crypto exchanges operating within the U.S., reducing the legal ambiguities that have long plagued the sector.
Coordination With Congress, But Independent Action Likely
While Congress continues to work on broader legislation for digital assets and stablecoins, Atkins asserted that the Securities and Exchange Commission (SEC) does not need to wait for new laws in order to act. “I think we have adequate authority under the securities laws to proceed,” he told reporters. However, he acknowledged the importance of maintaining coordination with legislative developments to ensure consistency in the regulatory approach.
Paul Atkins concluded by stressing the need for official rulemaking to replace the current patchwork of informal guidance and staff opinions. “We ought to come up with rules that can stand the test of time,” he said, highlighting his commitment to building a durable regulatory framework that supports innovation while safeguarding investor interests.
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