SEC chair outlines plan to revise crypto rules

Newly appointed U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins delivered his first public remarks at the third Crypto Task Force roundtable held on April 25 in Washington D.C., outlining his priorities for modernising regulations related to digital assets.

Atkins emphasised the need for a practical framework that acknowledges current market realities and addresses long-standing issues in the regulatory treatment of digital assets.

“I am eager to tackle long festering issues, such as regulatory treatment of digital assets and distributed ledger technologies,” he said.

He also praised Commissioner Hester Peirce, who leads the SEC’s Crypto Task Force, stating that “Commissioner Peirce is the right person to lead the effort to come up with a rational regulatory framework for crypto asset markets.”

Atkins signaled that the SEC will seek broader input from market participants and consider whether existing laws, including the Exchange Act and Investment Company Act, need to be amended to accommodate digital asset custody and trading.

“The current framework badly needs attention,” Atkins said, raising questions about whether the “special purpose broker-dealer” structure remains workable or if a new model is required.

According to Atkins, outdated policies have contributed to stalled innovation.

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

He also said he expects benefits from reform efforts in terms of efficiency, transparency, and risk mitigation in financial markets.

Atkins concluded by expressing interest in cross-agency collaboration.

“I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational, fit-for-purpose regulatory framework for crypto assets,” he said.

The roundtable placed particular focus on the challenges registrants face when handling crypto custody under existing federal securities laws.