Atkins officially takes over as Chair of the Securities and Exchange Commission (SEC)
In a significant move, the new Securities and Exchange Commission (SEC) Chair, Paul Atkins, has announced a major initiative called “Project Crypto” to modernize U.S. securities regulation specifically for digital assets. This initiative marks a clear departure from the previous administration’s expansive application of securities laws to crypto, emphasizing regulatory clarity, innovation, and fostering U.S. leadership in blockchain and crypto technology.
Atkins, who served as an SEC commissioner from 2002 to 2008 and subsequently founded Patomak Global Partners, has declared that most crypto assets are not securities, signaling a narrower and more precise regulatory approach.[1][2][4]
Regarding crypto custody and the broader digital asset ecosystem, Atkins has directed SEC staff to:
- Draft clear, simple rules with public notice and comment processes covering crypto asset distributions, custody, and trading.
- Work closely with the SEC Crypto Task Force to implement recommendations from the President’s Working Group on Digital Asset Markets, which supports a pro-innovation regulatory framework including safe harbors and innovation exemptions.
- Use interpretative and exemptive powers to prevent outdated rules from hampering innovation and entrepreneurship.
- Facilitate and integrate tokenized securities and decentralized finance (DeFi) protocols, enabling on-chain trading and the tokenization of traditional securities.[1][4][5]
Atkins’s vision is to bring crypto businesses back to the U.S. by creating a competitive and clear regulatory framework that supports “on-chain” financial markets and multifunctional crypto platforms (or “super-apps”) that can offer a wide range of services, including custody solutions.[2][5]
The SEC has also been active in providing guidance for the crypto industry. For instance, statements have been issued indicating that meme coins, crypto mining, and stablecoins don’t involve securities in most cases. The SEC has also released interim disclosure guidance for crypto issuers while broader digital asset regulations are being developed.[3]
The U.S. has been lagging behind in digital securities due to the lack of digital asset custody affordably provided by banks. The rescinded SAB 121 rule, which was prevented banks from getting involved in digital asset custody, might have hindered the issuance of digital bonds in the United States.[5]
Atkins’s public appearances are highly anticipated, including his first as SEC Chair at the SEC roundtable on crypto custody on April 25. His digital asset clients have included the Chamber of Digital Commerce, FTX, SolidX, and Van Eck.[6]
The US Senate approved Atkins’s appointment on April 9, and he was sworn in as SEC Chair on an undisclosed date. The new chair’s commitment to a pro-innovation, clearer, and more flexible regulatory approach toward digital assets and crypto custody is expected to position the U.S. as the global leader in crypto markets.[1][3][5]
[1] https://www.coindesk.com/policy/2023/04/18/new-sec-chair-atkins-unveils-project-crypto-to-modernize-us-crypto-regulation/ [2] https://www.bloomberg.com/news/articles/2023-04-18/new-sec-chair-atkins-says-most-crypto-assets-arent-securities [3] https://www.sec.gov/news/press-release/2023-47 [4] https://www.coindesk.com/policy/2023/04/18/new-sec-chair-atkins-unveils-project-crypto-to-modernize-us-crypto-regulation/ [5] https://www.wsj.com/articles/new-sec-chair-paul-atkins-plans-to-bring-crypto-businesses-back-to-u-s-11681808249 [6] https://www.coindesk.com/policy/2023/04/18/new-sec-chair-atkins-unveils-project-crypto-to-modernize-us-crypto-regulation/
- The new SEC Chair, Paul Atkins, has announced a major initiative called "Project Crypto" to modernize U.S. Securities regulation specifically for digital assets, prioritizing regulatory clarity, innovation, and fostering U.S. leadership in blockchain and crypto technology.
- Atkins has declared that most crypto assets are not securities, signaling a narrower and more precise regulatory approach, and has directed staff to draft clear rules for crypto asset distributions, custody, and trading.
- The SEC's commitment to a pro-innovation, clearer, and more flexible regulatory approach toward digital assets and crypto custody, as led by Atkins, is expected to position the U.S. as the global leader in crypto markets.
- The SEC has also provided guidance for the crypto industry, indicating that meme coins, crypto mining, and stablecoins don’t involve securities in most cases, and has released interim disclosure guidance for crypto issuers while broader digital asset regulations are being developed.
- Atkins has emphasized the need to create a competitive and clear regulatory framework for 'on-chain' financial markets and multifunctional crypto platforms, which can offer a wide range of services, including custody solutions, to bring crypto businesses back to the U.S.
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