SEC Chairman Paul Atkins has called for a comprehensive modernization of US crypto asset policies and outlined a three-pronged strategy for regulatory reform of issuance, custody, and trading.
On May 12, Atkins made the above remarks in his keynote speech at the latest roundtable meeting of the SEC's Crypto Asset Special Task Force, which explored the potential of tokenization to upgrade capital markets. Atkins likened the transition to blockchain-based securities to the digital transformation of the music industry, suggesting that "on-chain" assets could revolutionize capital markets in the same way that MP3s reshaped audio distribution.
Under Atkins' leadership, the SEC's top priority is to tailor a "sensible regulatory framework" for the digital asset market, moving away from the unpredictable enforcement patterns of the past few years that have stifled innovation. He pledged that policy-making will henceforth be conducted through formal channels rather than through ad hoc actions, reaffirming his recent statements.
Atkins said, "The SEC is entering a new phase."
Three-Pronged Reform Agenda
Atkins has developed an ambitious reform agenda, focusing on promoting compliant crypto asset issuance, expanding legitimate custody options, and modernizing the trading framework. He pointed out that only a handful of projects have successfully registered issuance products through the SEC's traditional channels, citing outdated disclosure forms and legal uncertainties as the main obstacles.
To address this issue, the regulatory body will consider developing more appropriate exemptions, safe harbor rules, and disclosure guidelines for digitally native assets. He emphasized that temporary staff guidance is just a stopgap measure and that comprehensive rules established by the commission are needed to create lasting standards.
On the custody front, Atkins supports repealing Staff Accounting Bulletin No. 121, which has imposed restrictive treatment on the holding of crypto assets. He called for a broader and clearer definition of the qualifications for "qualified custodians," stating that custody rules should evolve to reflect self-custody solutions and emerging best practices in the industry.
Regarding trading, Atkins expressed support for allowing broker-dealers to offer integrated services on a unified platform, including both crypto and non-crypto assets. He also raised the possibility of conditional exemption relief to permit the launch of new products that may not yet comply with existing rules.
Consolidating US Leadership in the Crypto Field
Atkins echoed President Donald Trump's call for the US to become the "global capital of crypto," warning that if the SEC fails to adapt, innovation will flow overseas. He praised the co-leaders of the newly established Crypto Asset Special Task Force, Mark Uyeda and Commissioner Hester Peirce, whose mission is to break down internal barriers and accelerate the issuance of guidance documents across the agency.
In his speech, Atkins emphasized the need to develop rules that protect investors while also supporting innovation. He stressed that combating fraud remains a top priority, but the SEC's enforcement approach will return to its "original intent" of regulating violations of defined obligations, rather than making policy through enforcement.
The SEC is expected to continue advancing additional rulemaking, staff guidance, and interagency coordination over the next few months, with the goal of positioning the US as a leader in tokenized financial infrastructure.
