SEC Chair Paul Atkins Announces Plans for New Cryptocurrency Regulations
May 12, 2025
By Hannah Lang, Reuters
Paul Atkins, the newly-appointed Chair of the U.S. Securities and Exchange Commission (SEC), has announced his intention to create regulatory frameworks for cryptocurrency tokens during a public meeting held by the SEC’s crypto task force on Monday. This announcement marks a significant pivot in the regulatory landscape for digital assets, which has faced considerable scrutiny and conflict with federal rules for several years.
Overhauling Crypto Policies
Atkins articulated his goal of establishing guidelines for the classification and distribution of crypto tokens considered securities. He emphasized the need for a rational regulatory structure that provides clarity for the issuance, custody, and trading of these digital assets. "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," Atkins stated. He aims to ensure that while fostering innovation in the crypto market, the SEC also discourages malicious practices that violate securities laws.
In addition to addressing token classification, Atkins hinted at the possibility of adjusting current rules to allow registered broker-dealers with alternative trading systems (ATS) to facilitate trading in non-securities, including major cryptocurrencies like Bitcoin and Ethereum.
Navigating Regulatory Challenges
The current regulatory environment for cryptocurrencies is complex and often contentious. Many industry advocates argue that a vast majority of crypto tokens should be classified as commodities, which would subject them to different regulations than those that apply to securities. The SEC’s enforcement actions under the previous administration, which targeted several prominent crypto firms for alleged violations, sparked considerable debate and pushback from the industry.
Atkins, who assumed office last month, has expressed his commitment to grounding the agency’s approach to digital assets in firm legal principles, free from political influence. This change could signal a shift toward a more balanced regulatory oversight that encourages innovation while maintaining investor protections.
Industry Response and Future Directions
Atkins’ proposals come amid an ongoing dialogue in the crypto sector regarding compliance and the need for a clear regulatory framework. The SEC’s Crypto Task Force, led by Republican Commissioner Hester Peirce, has been tasked with developing more comprehensive rules and guidance for the cryptocurrency market, which could have lasting implications for how digital assets are treated under U.S. law.
As the cryptocurrency industry continues to evolve, the SEC’s efforts to refine its regulations will likely play a pivotal role in shaping the future of digital asset trading, investment, and innovation in the United States.
In the context of this regulatory development, former President Donald Trump has expressed intentions to reverse the stringent regulatory policies instituted under the Biden administration, further complicating the regulatory landscape.
The coming months will be critical as the SEC prepares to outline specific frameworks and engage with stakeholders in the cryptocurrency space. With these efforts, the SEC aims to strike a balance that protects investors while fostering an environment conducive to growth in the burgeoning digital economy.
For further updates on cryptocurrency regulations and market developments, follow our coverage.
Hannah Lang is a financial technology and cryptocurrency reporter at Reuters, with a background covering bank regulation and the Federal Reserve.
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