SEC Chairman Paul Atkins has issued a sharp critique of past cryptocurrency regulation strategies, emphasizing the need for a restructuring of approaches to rebuild market trust.
Critique of Past Strategy
Atkins stated that the Commission's previous posture, which relied heavily on enforcement and initially ignored cryptocurrency, failed to provide clarity and discouraged legitimate market players.
"It seemed like a catch-22," Atkins said. "The message was, ‘You go figure it out.’ That environment did not create trust."
New Directions for SEC
To rebuild trust, Atkins directed the Division of Corporation Finance to engage more transparently with market participants. He emphasized that while formal crypto rulemaking is underway, interim staff guidance will continue assisting firms in navigating regulatory uncertainties.
Integration of FinHub into Core Operations
Atkins also proposed the formal integration of FinHub, the SEC’s Strategic Hub for Innovation and Financial Technology, into the agency’s core operations. This shift aims to foster innovation and adapt rules to evolving technologies, supporting registered firms in custodying and trading both securities and non-securities within a single entity.
Overall, Atkins' speech signals a strategic pivot for the SEC towards providing clarity and consistency in cryptocurrency regulation without stifling innovation.
