Paul Atkins challenges SEC’s old playbook, promises ‘fit-for-purpose’ crypto model

• Paul Atkins urges the SEC to replace outdated crypto rules with a practical, innovation-friendly framework.
• Atkins criticizes past enforcement tactics and calls for collaborative, adaptive digital asset regulation.

In a strong departure from his predecessor’s approach, newly appointed SEC Chairman Paul Atkins has emphasized the urgent need to revamp the agency’s outdated crypto regulations.

Atkins’ vision for the crypto industry

Speaking at the third crypto task force roundtable in Washington, D.C., Atkins criticized the current enforcement-first strategy, arguing that it has long hindered innovation within the digital asset space.

Instead, he called for a forward-looking, practical regulatory framework that can encourage technological progress and ensure investor protection, signaling a potential shift toward a more balanced and innovation-friendly policy stance.

Remarking on the same, in his opening remarks, Atkins noted, 

“Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.”

This highlights that just days into his new role, Atkins wasted no time signaling a shift in tone.

During his debut appearance at the agency’s crypto roundtable, Atkins underscored his intent to address persistent uncertainties surrounding digital asset regulation and distributed ledger technologies.

He emphasized the importance of collaboration with fellow commissioners, staff, and industry voices to craft a more adaptable and transparent framework.

In fact, his vision of a “rational fit-for-purpose” regulatory model marks a clear pivot from the SEC’s historically rigid stance, offering hope for more pragmatic oversight in the evolving crypto landscape.

Atkins praises Hester Peirce — Here’s why

Chairman Atkins also took a moment to commend Commissioner Hester Peirce, affectionately dubbed “crypto mom” by the community, for her unwavering commitment to advancing sensible crypto regulation.

Acknowledging her persistent efforts, he remarked that Peirce is well-positioned to spearhead the development of a balanced regulatory framework tailored to digital assets.

Atkins further conveyed a sense of optimism around blockchain technology, hinting at its transformative potential across industries if nurtured under the right policy environment.

He stated, 

“I expect huge benefits from this market innovation in terms of efficiency, cost reduction, transparency, and risk mitigation.”

Is Atkins taking a different approach from Gensler?

Additionally, the new SEC Chair also did not shy away from critiquing the regulatory legacy left by his predecessor, Gary Gensler.

He openly challenged the SEC’s previous reliance on enforcement-driven tactics, particularly the string of lawsuits targeting high-profile crypto firms like Coinbase and Binance, arguing that such an approach may have done more harm than good.

Reflecting on the interim leadership under Mark Uyeda, which saw a retreat from aggressive enforcement, Atkins hinted at a broader shift in tone and strategy.

He questioned whether the current “special-purpose broker-dealer” framework truly serves the evolving needs of crypto market participants, or if a more tailored, collaborative model is overdue.

That being said, Atkins’ remarks signal a clear departure from the past, one that emphasizes open dialogue with the industry and the creation of a regulatory structure that can genuinely accommodate the complexities of digital assets.