SEC Chair Paul Atkins has announced significant changes to the agency's approach to the crypto industry, moving away from the aggressive stance taken by his predecessor.
New Direction for SEC under Paul Atkins
In an interview with the Financial Times, Atkins stated that the SEC will now provide preliminary notices of technical violations to cryptocurrency businesses before taking any action. He emphasized that it is unreasonable to 'suddenly break down doors' and penalize businesses for minor infractions.
Critique of the Previous Regulatory Approach
Atkins noted that his predecessor, Gary Gensler, faced criticism for methods that lacked a foundation in precedent and predictability. Atkins remarked, 'It would shoot first and then ask questions later,' adding that the new leadership should allow for a potential period for outreach before enforcement actions are taken.
Future of Cryptocurrency Regulation
Atkins also indicated that most tokens do not fall under securities laws and expressed intentions to support trading of tokenized versions of stocks and bonds with the same legal rights as their underlying assets.
The changes in SEC policy under Paul Atkins may lead to more predictable and constructive interactions with the crypto industry, reducing uncertainty for businesses.
