Paul Atkins, who recently became U.S. Securities and Exchange Commission (SEC) Chairman, criticized how the agency managed cryptocurrency regulations since 2014.
Chairman Atkins expressed his views during his Washington DC crypto roundtable that SEC actions have served to limit innovation in cryptocurrency. Atkins made these remarks while participating in a conversation about establishing better regulatory standards.
Criticism of SEC’s past crypto stance
Atkins voiced concerns about the SEC’s role in fostering an unpredictable market environment. He remarked that the agency’s actions in recent years have contributed to market and regulatory unpredictability, which has hindered progress and innovation in the crypto sector.
Atkins said,
“Unfortunately, the innovation has been stifled for the past few years because of market and regulatory unpredictability that the SEC has promoted.
Atkins emphasized the importance of regulatory clarity in driving the future of virtual assets. He stressed the need for a “rational fit-for-purpose framework” to ensure growth while mitigating associated risks.
Efforts to foster regulatory clarity
Atkins, who recently took over the SEC leadership after former Chairman Gary Gensler’s departure, assured that he would work to bring much-needed regulatory clarity. His appointment follows the exit of Gary Gensler, who had been criticized for his hardline stance on cryptocurrency.
After Gensler’s departure, interim chair Mark Uyeda oversaw the SEC before Atkins officially assumed the role. The SEC has since relaxed its approach, canceling several investigations and withdrawing numerous cases.
Atkins has expressed his commitment to making the U.S. a leading and secure place for investment and business. He emphasized working with fellow commissioners and SEC professionals to facilitate capital formation while maintaining fair and efficient markets.
Focus on crypto custody and regulation
Atkins made these remarks during the third crypto roundtable, held on April 25, titled “Know Your Custodian: Key Considerations for Crypto Custody.” The roundtable was part of a series aimed at gathering insights to shape clearer regulations for crypto assets.
The SEC’s crypto task force has planned five such roundtables, focusing on developing a robust regulatory framework for the industry. Prior to his SEC commissioner role from 2002 to 2008, Atkins showed a strong return to support the SEC mission in market integrity enhancement.
