New SEC Chief Welcomes Congressional Support as Crypto Regulation Bills Advance
By José Oramas, April 29, 2025
In a significant move towards clarifying the landscape of cryptocurrency regulation in the United States, the newly appointed Chair of the Securities and Exchange Commission (SEC), Paul Atkins, expressed his eagerness for congressional support during a public roundtable held at the SEC headquarters in Washington. This alignment comes at a pivotal time as lawmakers debate the Financial Innovation and Technology for the 21st Century Act (FIT21), which seeks to delineate the regulatory responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC) over digital assets.
Urging Clarified Regulatory Framework
During his address, Atkins highlighted the necessity for a modernized approach to the current regulations governing cryptocurrency, stating that clear statutory guidelines would alleviate the regulatory ambiguity that has been perceived as stifling innovation in the sector. "It’s always good to have Congress’s input; if there’s a statute to back up what we’re doing, I think that’s all the better," Atkins remarked, emphasizing the importance of establishing a solid regulatory foundation to support the burgeoning blockchain industry.
Addressing Custody Challenges
One of the primary discussions at the roundtable revolved around the challenges faced by crypto custodians under existing securities laws. Atkins raised concerns about whether revisions to custody rules under the Exchange Act, Investment Advisors Act, or Investment Company Act are needed to effectively accommodate crypto assets and the growing complexities of blockchain systems. He affirmed that those pioneering blockchain technology in the financial sector deserve regulatory clarity, asserting that innovation has suffered due to prolonged uncertainty.
"I expect huge benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation," Atkins stated. "Market participants engaging with this technology deserve clear regulatory rules of the road. Innovation has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered."
Legislative Changes on the Horizon
Atkins’s remarks are particularly timely as lawmakers continue to deliberate the implications of the FIT21 bill. This legislation proposes a framework in which the SEC and CFTC would share oversight responsibilities for digital assets. Under the proposed structure, the CFTC would oversee “digital commodities,” while the SEC would focus on “restricted digital assets”—those deemed not decentralized or lacking functional blockchain systems.
The ongoing discussion around FIT21 marks a critical moment in the evolving regulatory landscape for cryptocurrencies, as it potentially sets the stage for how digital assets will operate within the U.S. financial system going forward.
A Call for Unity in Crypto Regulation
Atkins, who was sworn in as SEC Chair earlier this week following Senate confirmation, has reiterated his commitment to fostering an environment that encourages capital formation and market efficiency, all while protecting investors. He acknowledged the contributions of Commissioner Hester Peirce for her advocacy for a pragmatic approach to cryptocurrency policy, indicating a willingness for the SEC to work collaboratively with lawmakers and industry participants.
As the U.S. continues to navigate the complexities of digital asset regulation, the engagement between the SEC and Congress as highlighted by Atkins may mark a transformative step toward a clearer, more structured future for the cryptocurrency market.
For more updates on the evolving landscape of cryptocurrency regulation and related news, stay connected with us.
About the Author: José Oramas is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
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