David Edwards
In a decisive shift in tone and policy, SEC Chair Paul Atkins announced a new regulatory era aimed at positioning the United States as the “crypto capital of the planet.” Speaking at the third session of a four-part SEC roundtable series on tokenization, Atkins emphasized a move away from enforcement-led oversight toward proactive rulemaking that embraces blockchain innovation.
Opening the roundtable, Atkins framed the discussion as timely and critical, noting that securities are “increasingly migrating from traditional (off-chain) databases to blockchain-based (on-chain) ledger systems.” This evolution, he suggested, mirrors the digital transformation of the music industry and presents similar opportunities for market efficiency, liquidity, and automation.
Three Regulatory Pillars: Issuance, Custody, and Trading
The roundtable focused on three core areas: asset issuance, custody, and trading. Atkins acknowledged the limited use of registered offerings in crypto to date and proposed new registration exemptions to provide clarity for token issuers. He also indicated a willingness to revisit the definition and requirements of “qualified custodians” — potentially opening the door to self-custody solutions, which could be transformative for decentralized finance (DeFi) platforms and users.
In trading, Atkins showed support for expanding the scope of trading venues, including the development of integrated “super apps” that allow users to trade both securities and non-securities. He also advocated for a modernization of Alternative Trading System (ATS) regulations to better accommodate digital asset markets.
A Break from Past SEC Crypto Policy
Atkins directly criticized the SEC’s previous stance under earlier leadership, stating: “In the past few years, the SEC first pursued what I call the ‘head-in-the-sand’ approach – perhaps hoping that crypto would go away. Then, it pivoted and pursued a shoot-first-and-ask-questions-later approach of regulation through enforcement.”
Now, he said, the Commission is ready to “keep pace with innovation and consider whether regulatory changes are needed to accommodate on-chain securities and other crypto assets.”
He underscored the inadequacy of current frameworks like the S-1 registration form, suggesting they are incompatible with the unique nature of digital assets. “We cannot encourage innovation by trying to fit a square peg into a round hole,” Atkins added.
Political Backing and Forward Strategy
Since assuming office in April, Atkins has signaled alignment with President Donald Trump’s administration in pursuing a more innovation-friendly regulatory stance. “I am eager to coordinate with colleagues in President Trump’s Administration and Congress to make the United States the best place in the world to participate in crypto asset markets,” he concluded.
The final session of the SEC’s tokenization roundtable series, titled “DeFi and the American Spirit,” is scheduled for June 9.
The announcement follows a significant industry development: the SEC’s $50 million settlement with Ripple, concluding a five-year legal battle that symbolized the prior administration’s adversarial approach to crypto.
