SEC Chair Atkins Unveils Crypto Reform Plan to Tackle Regulatory Challenges

SEC Chair Paul Atkins has pledged to reshape crypto regulation, promising clear rules for asset issuance, custody, and trading. Speaking at the SEC’s crypto roundtable, he criticized past enforcement-led tactics. While Atkins pushed for reform, Commissioner Crenshaw urged caution, and Commissioner Uyeda pointed to tokenization’s potential for market efficiency.

Atkins Vows Clear Crypto Guidelines

New SEC Chair Paul Atkins said on Monday that the agency is making big changes in how it handles cryptocurrency. He shared plans for setting clear rules around how crypto assets are issued and stored, calling it a “new day” for the SEC.

Atkins, who was appointed by President Donald Trump, explained the changes during the SEC’s latest crypto task force roundtable.

He said, “A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for issuance custody and trading of crypto assets while continuing to discourage Bad actors from violating the law.”

Atkins made it clear that the SEC’s existing rules don’t work well with blockchain. He didn’t hold back in criticizing how the agency handled crypto in the past, saying, “First, they buried their heads in the sand, hoping crypto would go away. Then, they shifted to a shoot-first, ask-questions-later style of enforcement.”

Because of this confusion, many companies have been left unsure about how to follow the law when issuing crypto assets. Atkins said it’s time for clear rules that actually make sense for blockchain and new technology.

Atkins Targets Crypto Custody Rules and Urges Overhaul

Atkins called crypto custody one of the biggest regulatory issues and criticized SAB 121 as a major mistake that confused the market. He argued the SEC had overstepped and pushed for rules that support self-custody, which often offers stronger security than traditional methods.

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Atkins suggested updating custody rules to let advisors and funds self-custody assets when appropriate and replacing the current broker-dealer framework with something more practical.

He also pushed for modernizing crypto trading rules, allowing platforms to handle both securities and non-securities, and revamping ATS regulations to better fit digital assets. “We cannot encourage innovation by forcing companies offshore,” he warned, calling for smart regulatory exemptions to keep U.S. firms competitive.

On the other hand, commissioner Caroline Crenshaw urged caution on tokenization, warning that the concept is often misunderstood or misapplied. She called on the industry to clearly define whether tokenization refers to digital versions of existing assets or a completely new trading system.

Crenshaw highlighted that any innovation must be thoroughly tested and truly useful, not just driven by market hype. She also stressed the SEC’s duty to protect all investors, regardless of how advanced the technology appears.

In contrast, Commissioner Mark Uyeda pointed to the benefits of tokenization. He said it could boost market efficiency through smart contracts and improved liquidity.