According to a report by Financial Times, the U.S. Securities and Exchange Commission (SEC) plans to adopt a new approach to regulating crypto firms by notifying them of technical violations before taking action.
Softer SEC Approach
SEC Chair Paul Atkins stated in an interview with Financial Times that the agency intends to shift its policy. He emphasized that they will continue targeting fraudsters but that there are 'other gradations' of violations that require notice. Atkins criticized the previous aggressive approach of the SEC towards minor infractions, expressing a desire to allow companies the chance to correct their compliance issues before enforcement actions are imposed.
Crypto Regulation Goals
Atkins also addressed his ambitions related to digital asset regulation, aligning with former President Trump's promise to establish the U.S. as the crypto capital of the world. Unlike former SEC Chair Gary Gensler, who enforced stringent measures against crypto firms, Atkins believes that most tokens do not qualify as securities and supports legislation that would enable investors to trade tokenized shares and bonds using blockchain technology.
Changes in Enforcement
Within this context, Atkins criticized past SEC actions that imposed hefty fines for record-keeping violations. He pointed out the need for clear rules and adherence to the law, which should enhance trust in the system. SEC plans to make new rules for smart contracts and tokenized securities in the future, assuring that companies must proceed cautiously when engaging with the U.S. market.
The shift to notifying firms of technical violations before taking action indicates a more flexible SEC approach to crypto industry regulation, which may positively impact business and investments in this sector.
