With the appointment of new chair Paul Atkins, the U.S. Securities and Exchange Commission (SEC) has announced a reworking of its methods in dealing with cryptocurrency companies, emphasizing collaboration.
New Interaction Methods with the Crypto Industry
Under Paul Atkins, the SEC is moving away from an 'enforcement first' approach by offering companies preliminary notices of violations, allowing them to rectify issues before formal actions are considered. Atkins stated that the regulator should not act in panic.
Critique of Previous Leadership
Atkins criticized the aggressive approach of his predecessor Gary Gensler, who initiated lawsuits against major platforms like Ripple, Coinbase, and Binance. Atkins emphasized that many of these cases lacked precedent and predictability, leading to significant costs for the industry.
Establishment of a New Crypto Task Force
The SEC has established a new Crypto Task Force aimed at direct engagement with the crypto industry, highlighting its desire for open dialogue rather than conflict. This reflects President Donald Trump's approach to fostering blockchain innovation.
With the transition to a more open approach under Atkins, the cryptocurrency industry may anticipate more predictable and structured regulations, potentially changing the atmosphere of interaction with regulators.
