Newly appointed SEC Chair, Atkins, takes oath of office
The United States Securities and Exchange Commission (SEC) is set for a major shift in digital asset regulation under the leadership of new Chair Paul Atkins. Atkins, who was sworn in after his appointment by the US Senate on April 9, has announced an initiative called Project Crypto.
During his confirmation hearing, Atkins stated that a top priority of his chairmanship will be to provide a firm regulatory foundation for digital assets. This initiative, announced in July 2025, aims to modernize the US regulatory framework for digital assets, positioning the country as a global leader in blockchain and crypto markets, aligning with President Trump's vision of making the US the "crypto capital of the world."
Atkins has signalled a clear break from the previous administration’s expansive stance. He has stated that most crypto assets are not securities, signalling a narrower application of securities laws to digital assets. This could lead to a shift towards more participation by banks in digital asset custody, addressing the lack of affordable digital custody services provided by banks that has hindered the US in digital securities development.
The SEC has released interim disclosure guidance for crypto issuers while broader digital asset regulations are being developed. Atkins aims to direct SEC staff to draft clear and simple rules regarding crypto asset distributions, custody, and trading, promoting regulatory clarity and reducing reliance on “regulation-by-enforcement.”
Project Crypto also includes developing guidelines to classify crypto assets, differentiating when they qualify as securities, stablecoins, digital commodities, or digital collectibles. It also plans to facilitate the tokenization of traditional securities (like stocks and bonds) and integrating these into decentralized finance (DeFi) protocols without centralized intermediaries.
Innovations such as “super-apps” that combine multiple crypto services on single platforms and enabling financial markets to move “on-chain” (based on blockchain technology) are also part of Project Crypto. Atkins intends to employ interpretive, exemptive, and other existing SEC authorities to ensure that outdated rules do not hinder innovation and entrepreneurship in the US crypto space.
The new Chair's actions may result in a significant shift towards a more supportive environment for digital asset technologies under Chair Atkins. The rescinded SAB 121 rule, which prevented banks from getting involved in digital asset custody, may be revisited, opening up the sector to more participation from the banking sector.
Atkins' previous actions as an SEC commissioner from 2002 to 2008 and his subsequent founding of Patomak Global Partners, which provides strategy, advisory services, compliance, and litigation support, have given him a deep understanding of the regulatory landscape. His digital asset clients include the Chamber of Digital Commerce, FTX, SolidX, and Van Eck.
Atkins might make his first public appearance as SEC Chair at this Friday's roundtable on crypto custody. The future of digital asset regulation in the US is now under the watchful eye of Chair Atkins, and his initiatives under Project Crypto are expected to create a more favourable environment for the crypto community.
[1] Project Crypto: Modernizing the U.S. Regulatory Framework for Digital Assets - SEC Press Release, July 2025 [2] Paul Atkins Sworn In as SEC Chair - SEC Press Release, Unspecified Date [3] New SEC Chair Paul Atkins Outlines Priorities for Digital Asset Regulation - CoinDesk, April 9, 2023 [4] The US Senate Approves Paul Atkins as SEC Chair - The Wall Street Journal, April 9, 2023 [5] SEC's New Chair Paul Atkins to Focus on Digital Asset Regulation - Forbes, April 9, 2023
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