Paul Atkins wants to solidify his vision for the crypto market before the political tide changes again in Washington. As the new head of the U.S. Securities and Exchange Commission, he is rapidly moving toward “forward-looking” SEC policies that could determine how much freedom the crypto industry enjoys after President Donald Trump leaves office.
Atkins, speaking at a conference hosted by the Managed Funds Association in New York on Tuesday, said the SEC would move quickly to implement rules that would “future-proof” his agenda. He specifically mentioned the removal or weakening of public and private market regulations that could impact the crypto industry after Trump and Atkins leave office.
“I think we have a great opportunity to come together and create something sustainable with a ‘can do’ mentality,” Atkins said of cooperation with U.S. regulators. “My main concern is future-proofing this against potential changes in the future. All we have to do is get things done, get the agreement, and then let the market work (…).”
Regarding cooperation with the Commodity Futures Trading Commission (CFTC), the SEC Chairman said:
“What I want to warn people as we move forward, especially when it comes to digital assets, is that you can’t have two fortresses on either side of a no-man’s-land, because that no-man’s-land is littered with the carcasses of future products that have been killed in the barrage of two agencies over the years.”
Paul Atkins (right) speaks in New York on Tuesday. sauce: Managed Fund Association
Even before the U.S. Senate confirmed Atkins as SEC chairman in April, then-acting Commissioner Mark Ueda had made significant changes to the agency’s approach to digital assets, closing several investigations and lawsuits against crypto companies and establishing a virtual currency task force under Commissioner Hester Peirce.
Under Atkins, the commission reportedly changed the listing standards for crypto exchange-traded funds (ETFs), considered allowing stock trading on the blockchain, considered waiving the agency’s quarterly reporting requirements, and held a roundtable with the CFTC to seek regulatory “harmonization.”
“It is difficult to reverse momentum in digital assets,” said Andrew Forson, president of Canada-based DeFi Technologies, in response to an email from Cointelegraph. “Despite differing leadership philosophies, U.S. policy is increasingly aligning traditional capital markets with decentralized finance.”
Will a future President of the United States be able to undo all of the SEC’s work with the stroke of a pen?
Atkins has broad authority to propose and support rules and policies favorable to the crypto industry, but he has worked closely with the current administration based on public statements. As SEC Chairman, he can direct the SEC to take enforcement actions and adopt policies.
Shortly after former SEC Chairman Gary Gensler resigned in January, the agency softened its approach to cryptocurrency enforcement and halted years of investigations and litigation. One might wonder if a future U.S. president could become more anti-cryptocurrency or technology-neutral, as the SEC has done with many of Gensler’s positions, and could quickly reverse Atkins’ policies.
“It will be difficult for the new SEC Chairman to completely reverse the policies proposed by Chairman Atkins,” Forson told Cointelegraph. “However, future regimes could impose additional reporting requirements and compliance burdens, effectively slowing down progress and innovation. This would mirror the early days of ICOs, when overregulation stifled legitimate token offerings.”
Mr Forson added:
“If a less crypto-friendly administration takes over, existing instruments are likely to be phased out, but new entrants will face significant headwinds. Regulatory changes may stifle innovation, but they cannot dismantle an already well-established ecosystem.”
Related: US Government Shutdown Day 1: Is the SEC Still Working?
David B. Hoppe, a technology and media lawyer and founder of Gamma Law, offered a slightly different perspective, saying that a future SEC chair cannot unilaterally roll back SEC rules and regulations. However, it is possible that the SEC’s “internal priorities” set by Atkins could be changed and resources returned to pursuing enforcement cases and investigations against crypto companies.
“A vote of the SEC Commissioner could also allow a future chair to overturn the SEC’s official policy announced under Mr. Atkins,” Hoppe told Cointelegraph. “This could mean a return to the SEC’s previous position in which virtual currency projects are presumed to be implicated in securities laws. Although non-binding, the SEC’s policy statement conveys its priorities for interpreting and enforcing SEC rules and could have significant implications for market participants.”
What about SEC regulations changed by Congress?
The market structure bill currently moving through the U.S. Senate could also significantly change SEC regulations and, if passed and signed into law, would require Congress to change or rescind other legislation. But Hoppe says some changes under the Market Structures Act are likely to face more difficult challenges.
“Any regulations adopted by the SEC and CFTC to implement the Market Structure Act will simply go through the standard notice and comment process (or other applicable steps), making it much easier to amend or rescind,” Hoppe told Cointelegraph. “In the future, the SEC or CFTC may decide to reinterpret the provisions of the Market Structure Act and amend or rescind the regulations accordingly.”
Cointelegraph reached out to Atkins for comment, but did not receive a response at the time of publication.
As of Thursday, the U.S. government is in its ninth day of a government shutdown due to lawmakers’ failure to reach an agreement on a funding bill. Although the SEC continues to operate with reduced staffing and operations, Atkins said Tuesday that the agency’s activities “have not slowed down” during the shutdown.
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