SEC Chair Announces Plans for New Cryptocurrency Regulations
By Hannah Lang
May 12, 2025
In a significant move that could reshape the cryptocurrency landscape in the United States, Paul Atkins, the Chair of the Securities and Exchange Commission (SEC), outlined his vision for an overhaul of the agency’s regulatory policies regarding crypto tokens on Monday. Speaking at a public meeting of the SEC’s newly formed crypto task force, Atkins emphasized the need for clearer guidelines to govern the distribution of cryptocurrencies classified as securities.
A New Regulatory Framework
Atkins stated that a key priority during his tenure will be to create a rational regulatory framework that sets distinct rules for the issuance, custody, and trading of crypto assets. He expressed a commitment to discourage unlawful activities while fostering a clear understanding of the SEC’s regulations within the crypto industry. "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 while continuing to discourage bad actors from violating the law," he said.
The proposed framework aims to clarify the existing ambiguities surrounding the classification of crypto tokens. Many within the industry argue that the majority of these tokens function more like commodities rather than securities. If classified as securities, firms would be required to register with the SEC and adhere to stringent disclosure requirements designed to protect investors.
Consideration of Expanded Trading Options
In addition to new rules for token distributions, Atkins indicated that the SEC may evaluate adjustments to existing regulations, particularly for registered broker-dealers employing alternative trading systems (ATS). These revisions could allow broker-dealers to facilitate trading in non-securities, such as bitcoin and ether, the two largest cryptocurrencies by market capitalization.
This potential change aims to provide greater flexibility for trading platforms while ensuring regulatory oversight remains in place.
Leadership and Industry Dynamics
Atkins, who was sworn in as SEC Chair just last month, has consistently emphasized a vision of establishing a firm foundation for digital assets and maintaining a non-partisan approach to securities regulation. His leadership comes on the heels of a contentious period in which the cryptocurrency industry has often found itself at odds with regulators. Under the previous administration, several crypto firms, including prominent platforms like Coinbase and Kraken, faced lawsuits alleging violations of securities laws.
The SEC’s recent leadership has indicated a willingness to reconsider some of these actions, with plans to withdraw or pause certain cases initiated by the former administration. Notably, Commissioner Hester Peirce, a Republican and a strong advocate for innovation in the cryptocurrency sector, is leading the SEC’s crypto task force, which is responsible for developing these new regulatory guidelines.
Looking Ahead
As the SEC embarks on this regulatory journey, the implications for the cryptocurrency market could be profound, setting precedents for how digital assets are governed in the future. Stakeholders from across the industry are closely monitoring these developments, as the forthcoming regulations will have a direct impact on how cryptocurrencies are traded and treated legally in the United States.
Reporting from New York by Hannah Lang; Edited by Pete Schroeder and Andrea Ricci.
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