SEC to shape crypto policy with ‘notice and comment,’ says Atkins
The U.S. Securities and Exchange Commission (SEC) under Chair Paul Atkins is shifting its approach to crypto regulation by emphasizing "notice and comment" rulemaking rather than relying on enforcement actions and court-driven policy shaping.
Atkins told Congress that the SEC will use its existing authorities to create clear, fit-for-purpose standards for market participants, focusing on a rational regulatory framework for crypto assets that includes clear rules for issuance, custody, and trading of cryptocurrencies. This approach aims to protect investors from fraud and scams while discouraging bad actors from violating the law.
Atkins criticized the previous SEC leadership under Gary Gensler for shaping crypto policy primarily through lawsuits and legal settlements instead of transparent rulemaking. He pledged that the SEC’s enforcement will return to its original mission of policing fraud and manipulation rather than technical violations.
The SEC’s Crypto Task Force, launched earlier in 2025, is actively working on developing sensible regulations that balance industry innovation with investor protection, with reports and roundtables planned on key topics including DeFi and tokenization.
Additionally, Atkins has proposed disbanding the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub), integrating innovation priorities SEC-wide rather than confining them to a small office. Since Atkins took office, the SEC has dropped several high-profile crypto lawsuits and issued guidance signaling a softer regulatory stance.
Overall, the SEC under Paul Atkins is moving toward a more transparent, rule-based regulatory framework for crypto that seeks to provide clarity and stability to the market, reduce volatility, and foster innovation while maintaining strong investor protections.
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