On Monday, new SEC Chair Paul Atkins addressed capital markets, outlining his vision for a more constructive regulatory environment for cryptocurrency [Text 1]. He criticized the previous administration's "regulation by enforcement" approach, which he believes stifled innovation.
Atkins described past SEC strategies as a "head-in-the-sand" approach, followed by a more aggressive method. He emphasized this created a "Catch-22" for those navigating the regulatory landscape, leading to a lack of trust [Text 1].
Atkins stated the crypto markets have been languishing in SEC limbo for years. He advocated for regulators to adapt existing rules to accommodate technological advancements, fostering innovation [Text 1].
To address communication failures, Atkins directed the Division of Corporation Finance to maintain transparent interactions. SEC staff is currently drafting rule proposals related to cryptocurrency, and Atkins encouraged staff to provide useful insights through informal FAQs [Text 1].
Atkins proposed allowing SEC registrants to custody and trade both securities and non-securities under one roof. He concluded by promising to prioritize innovation, enhancing the market for investors [Text 1].
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