The U.S. Securities and Exchange Commission (SEC) is officially shifting its crypto regulatory strategy away from enforcement and toward a public rulemaking process, according to new comments from Chair Paul Atkins.
📜 A New Era of Crypto Rulemaking
Speaking before the Senate Appropriations Subcommittee on June 3, Atkins declared that the SEC’s future crypto policies would be created through a “notice and comment” process — a more transparent and collaborative regulatory approach.
“The commission will utilize its existing authorities to set fit-for-purpose standards for market participants,” Atkins stated.
The move is a departure from former Chair Gary Gensler’s enforcement-heavy strategy, which drew criticism from the crypto industry for lacking clarity and relying heavily on lawsuits and legal settlements.
🚫 No More Regulation by Enforcement
Atkins emphasized that enforcement will now focus strictly on violations of clearly established rules, especially regarding fraud and market manipulation.
“Clear rules of the road are necessary for investor protection against fraud,” he said, adding that a clear framework will help users recognize scams and unlawful schemes.
The SEC will also begin defining standards for:
-
Crypto issuance
-
Custody services
-
Token trading platforms
💬 Crypto Task Force to Lead Rulemaking
Atkins noted that the SEC’s Crypto Task Force, created in January 2025, is working on the agency’s first dedicated crypto regulatory framework. He reiterated that its report is expected in the coming months and will inform much of the SEC’s future policymaking.
However, when asked if crypto exchanges could handle both traditional securities and digital tokens, Atkins did not give a direct answer. Instead, he pointed to the ongoing work of the task force.
🔄 FinHub Faces Shutdown
In another surprising shift, Atkins announced plans to disband FinHub, the SEC’s Strategic Hub for Innovation and Financial Technology.
“Innovation should be ingrained into the culture SEC-wide and not limited to a relatively small office,” he explained, signaling a move to integrate fintech oversight more broadly across the agency.
🔍 SEC Softens Stance Since Gensler’s Exit
Since Gensler’s resignation in January, the SEC has:
-
Dropped several major enforcement actions against crypto firms
-
Issued guidance clarifying that common staking activities do not violate securities laws
-
Shared how federal securities rules could apply to various crypto use cases
These actions suggest a more industry-friendly and innovation-focused approach under Atkins’ leadership.
📢 What It Means for Crypto
The SEC’s pivot to rulemaking by public input could finally bring regulatory clarity to the U.S. crypto sector, especially as it struggles with legal uncertainty and regulatory fragmentation.
Market participants should prepare to engage in public comment periods, as the SEC begins defining the “rules of the road” for digital assets.
For ongoing updates on U.S. crypto regulation, visit https://cryptodicenews.blog
