SEC Chair Paul Atkins has announced significant changes in regulatory strategy regarding cryptocurrencies and minor violations by companies.
Changes in Penalties for Minor Violations
Paul Atkins noted that the SEC plans to give companies notice before enforcing penalties for minor violations. This change reflects a softening of the strict enforcement programs in place during the Biden administration. Atkins emphasized that the previous approach had been ineffective and not always legally grounded.
New SEC Strategy on Cryptocurrencies
Atkins takes a stance different from his predecessor Gary Gensler, arguing that most tokens are not securities. He expressed a desire to create rules for trading tokenized shares and bonds on the blockchain, aiming to keep activities within the U.S. instead of offshore. Previously, the SEC under Gensler had launched multiple lawsuits against major cryptocurrency companies, costing the industry billions.
Caution for Companies Trading Tokenized Stocks
Atkins also warned companies already trading tokenized U.S. stocks to exercise caution. He emphasized that securities laws still apply and that rules are being developed for 'smart contracts' that ensure instant trade settlement.
Paul Atkins aims for a more balanced and predictable approach to regulation, allowing companies the chance to rectify mistakes and establish new rules in the rapidly evolving cryptocurrency sector.
