U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins told lawmakers that the agency will pursue cryptocurrency regulation through formal rulemaking, moving away from the prior administration’s reliance on enforcement actions.
Speaking before the Senate Appropriations Subcommittee on Financial Services on June 3, Atkins emphasized that future crypto policy will be crafted “through notice and comment rulemaking, not through regulation by enforcement.”
“The commission will utilize its existing authorities to set fit-for-purpose standards for market participants,” Atkins said, reaffirming his commitment to developing a “rational regulatory framework for crypto assets” as a top priority during his tenure.
The statement signals a shift from the enforcement-heavy approach taken by former SEC Chair Gary Gensler, whose leadership drew criticism from the crypto industry for pursuing regulatory clarity primarily through litigation and settlements.
Atkins indicated the agency will refocus its enforcement division on its original mission to target violations of established rules, especially those involving fraud and manipulation.
He also pledged that the SEC would establish “clear rules of the road” for key areas of the digital asset ecosystem, including issuance, custody, and trading. “Clear rules of the road are necessary for investor protection against fraud, not the least to help them identify scams that do not comport with the law,” he added.
During the hearing, Democratic Senator Chris Coons asked Atkins whether he would support allowing crypto exchanges to handle both traditional securities and digital tokens. While Atkins did not provide a direct response, he noted that the SEC’s Crypto Task Force is actively working on industry-specific regulations that promote innovation.
The Crypto Task Force, launched on Jan. 21 under acting SEC Chair Mark Uyeda, is tasked with crafting a practical regulatory framework for digital assets. Atkins said the task force will release its first report in the coming months. He previously addressed lawmakers on the matter during a May 20 appearance.
Atkins also revealed he has requested congressional approval to disband the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub), which was established in 2018 to focus on emerging fintech sectors.
“Innovation should be ingrained into the culture SEC-wide and not limited to a relatively small office,” Atkins explained. “The principles and priorities under which it was established are being integrated into the very fabric of the SEC.”
Since Gensler’s resignation on Jan. 20, the SEC has taken a notably different stance toward crypto regulation. The agency has dismissed several long-standing enforcement actions against crypto firms and issued guidance indicating that common crypto staking practices may not violate securities laws.
The SEC has also begun providing additional clarity on how federal securities regulations apply to the digital asset space—part of a broader effort to improve transparency and reduce regulatory uncertainty for market participants.
