Newly appointed Securities and Exchange Commission (SEC) Chair, Atkins, officially takes office

Newly appointed Securities and Exchange Commission (SEC) Chair, Atkins, officially takes office

The United States Securities and Exchange Commission (SEC) is set for a significant shift in digital asset regulations under the leadership of its new chair, Paul Atkins. Atkins, who was approved by the US Senate on April 9, has unveiled "Project Crypto," an initiative designed to modernize U.S. securities rules and support the growth of blockchain technology.

Atkins' vision is to provide regulatory clarity on crypto custody and digital asset activities through new, well-defined rules. He has directed SEC staff to draft clear, simple regulations that will govern crypto asset custody, trading, and distributions. This move marks a departure from the previous "regulation-by-enforcement" approach, signaling a narrower application of securities laws and acknowledging that most crypto assets are not securities.

Atkins' stance on crypto custody is part of a broader effort to create a comprehensive regulatory structure. This includes rules clarifying which digital assets qualify as securities versus others like stablecoins or digital commodities. The initiative also aims to facilitate tokenized securities and enable decentralized finance (DeFi) protocols for trading tokenized securities without central intermediaries.

Moreover, Atkins plans to permit multifunctional crypto platforms or "super-apps" to expand their services, including custody, in a regulated yet flexible environment. He also intends to use interpretative and exemptive relief to prevent outdated rules from hindering innovation.

In addition, Atkins announced the soon-to-launch President’s Digital Assets Group within the SEC. This group will guide the crafting of regulations that foster innovation while ensuring fair and consistent investor protections aligned with international standards.

Atkins' digital asset clients include the Chamber of Digital Commerce, FTX, SolidX, and Van Eck. His priority, as stated during his confirmation hearing, is to provide a regulatory foundation for digital assets.

The new SEC Chair might make his first public appearance as SEC Chair at the SEC roundtable on crypto custody on April 25. This event will provide a platform for Atkins to further elaborate on his vision for digital asset regulation.

The lack of affordable digital custody provided by banks in the United States has been a hindrance to the growth of digital securities, with most digital bonds having been issued in Europe and Asia. The rescinded SAB 121 rule, which prevented banks from participating in digital asset custody, was a contributing factor to this. However, with Atkins' initiative, there is hope that the U.S. will reclaim its leadership position in the crypto market.

The SEC has already released interim disclosure guidance for crypto issuers while broader digital asset regulations are being developed. This guidance aims to provide greater clarity for the crypto community regarding digital assets.

Atkins served as an SEC commissioner from 2002 to 2008 and, after leaving the SEC, founded Patomak Global Partners, a firm that provides strategy, advisory services, compliance, and litigation support.

Notably, former SEC Chair Gary Gensler enforced regulations on the cryptocurrency sector that were unpopular among the community. Atkins' approach, with its emphasis on regulatory clarity and avoiding heavy-handed enforcement tactics, represents a clear policy shift aimed at fostering innovation in the crypto space.

[1] CoinDesk (2023). SEC Chair Paul Atkins Outlines Plans for Crypto Regulation. [online] Available at: https://www.coindesk.com/policy/2023/04/10/sec-chair-paul-atkins-outlines-plans-for-crypto-regulation/

[2] Yahoo Finance (2023). SEC to Launch President’s Digital Assets Group. [online] Available at: https://finance.yahoo.com/news/sec-launch-presidents-digital-assets-group-134000844.html

[3] Bloomberg (2023). SEC Chair Paul Atkins: Crypto Asset Custody Rules Coming Soon. [online] Available at: https://www.bloomberg.com/news/articles/2023-04-11/sec-chair-paul-atkins-says-crypto-asset-custody-rules-coming-soon

[4] Wall Street Journal (2023). SEC Chair Paul Atkins: Regulatory Clarity for Crypto. [online] Available at: https://www.wsj.com/articles/sec-chair-paul-atkins-regulatory-clarity-for-crypto-11681151880

[5] Forbes (2023). New SEC Chair Paul Atkins: A Fresh Approach to Crypto Regulation. [online] Available at: https://www.forbes.com/sites/johnkoetsier/2023/04/12/new-sec-chair-paul-atkins-a-fresh-approach-to-crypto-regulation/?sh=7b5e9860715c

Read also:

• Stratospheric Blockchain Network Launched by World Mobile and Protelindo
• Two Aspects I Adore in the Lexus LFR, Alongside One Concern That Troubles Me
• Powerful! If Virtual Racing Characters Represented Real-Life Supercars, the Mighty Bugatti Mistral Would Be the Game's Final Challenger
• Significant Expansion Forecasted for Gesture-Controlled Technology Wearables Sector at a Rate of 14.4%