Securities and Exchange Commission Chairman Paul Atkins has proposed a comprehensive overhaul of US crypto asset policy, outlining a three-part strategy to revamp regulations for issuance, custody, and trading. His remarks were delivered during a keynote address at the SEC Crypto Task Force’s recent roundtable on May 12, which focused on tokenization and its potential to enhance capital markets.
Atkins drew parallels between the adoption of blockchain-based securities and the music industry’s transition to digital formats, suggesting that “on-chain” assets could revolutionize capital markets much like MP3s transformed audio distribution.
Under Atkins’ leadership, the SEC’s primary objective will be to develop a “rational regulatory framework” specifically tailored to digital asset markets, departing from previous unpredictable enforcement actions that hindered innovation. He pledged that future policymaking would be conducted through formal channels rather than ad-hoc measures, as he has recently emphasized.
Regarding his three-pronged reform plan, Atkins outlined a bold agenda that focuses on facilitating compliant crypto asset issuance, expanding custody options, and modernizing trading frameworks. He noted the challenges faced by projects seeking traditional SEC registration due to outdated disclosure requirements and legal ambiguity, and proposed exemptions, safe harbors, and guidance tailored to digital-native assets.
On the custody front, Atkins endorsed the revision of Staff Accounting Bulletin No. 121, which had imposed restrictive regulations on crypto holdings. He called for greater clarity on what constitutes a “qualified custodian” and advocated for custody rules to evolve in line with self-custody solutions and industry best practices.
In terms of trading, Atkins expressed support for allowing broker-dealers to offer integrated services for both crypto and non-crypto assets on unified platforms. He also suggested the potential for conditional exemptive relief to accommodate innovative products that do not currently fit within existing regulatory frameworks.
Atkins emphasized the importance of the United States maintaining its leadership position in the crypto space, echoing President Donald Trump’s vision of making America the “crypto capital of the planet.” He commended Commissioners Mark Uyeda and Hester Peirce for their roles in leading the newly established Crypto Task Force, which aims to streamline internal processes and expedite guidance within the agency.
Throughout his address, Atkins stressed the need for rules that safeguard investors while fostering innovation. He reiterated that fraud prevention remains a top priority, but the SEC’s approach will return to its core mission of enforcing established obligations rather than creating policy through enforcement actions.
Looking ahead, the SEC is expected to engage in further rulemaking, provide additional staff guidance, and collaborate with other agencies to solidify the US’s position as a leader in tokenized financial infrastructure.
In conclusion, Chairman Atkins’ call for a modernized approach to crypto asset regulation signals a new era at the SEC, one that prioritizes innovation and investor protection in equal measure.