David Edwards
U.S. Securities and Exchange Commission Chair Paul Atkins signaled a potential regulatory pivot on Friday, revealing the agency is evaluating a new “innovation exemption” designed to catalyze the growth of tokenized securities markets. The proposal, aimed at fostering onchain asset movement, would grant targeted relief from traditional securities regulations to enable new trading models, according to remarks made at a Bloomberg-hosted event.
“If it can be tokenized, it will be tokenized,” Atkins stated, affirming his belief that blockchain technology is poised to reshape capital markets. Though he acknowledged the unpredictable nature of this transition, he expressed optimism about its long-term potential.
Regulatory Recalibration in Washington
The announcement follows Thursday’s House passage of three key cryptocurrency bills: the GENIUS Act, the Digital Asset Market Clarity (CLARITY) Act, and the Anti-CBDC Surveillance State Act. The GENIUS Act, now awaiting President Donald Trump’s signature, introduces a comprehensive framework for stablecoin oversight and may serve as a precursor to broader digital asset regulation. The law will become effective 18 months post-signing or 120 days after final rule issuance by the Treasury and Federal Reserve.
Atkins’ stance marks a significant departure from former SEC Chair Gary Gensler, whose tenure was defined by aggressive enforcement. “Blockchain and crypto asset technologies have the potential to revolutionize America’s financial infrastructure and deliver new efficiencies, cost reductions, transparency, and risk mitigation,” Atkins said.
Industry Divides Emerge
While the crypto sector has broadly welcomed the GENIUS Act as a regulatory turning point, not all lawmakers are aligned. Ethereum developer Eric Conner called the bill “the clearest signal yet that DeFi is winning the regulatory argument.” However, Senator Elizabeth Warren voiced skepticism, asserting the legislation does not sufficiently protect consumers from fraud and market manipulation.
Addressing concerns about stablecoin backing, Atkins emphasized that the legislation clearly places regulatory responsibility with banking authorities rather than the SEC. “It’s the banking regulators who will be overseeing them, and I think that’s appropriate,” he noted.
Retirement Plans and Disclosure Caution
Atkins also addressed the debate over including crypto in retirement plans, stressing the need for transparency rather than blanket restrictions. “The government should not stand as a blocking agent,” he said. “But we need to enable it in the proper way—with proper guidelines and proper disclosures.”
