SEC’s New Approach too Crypto Innovation Under Paul Atkins
Paul Atkins, leading the U.S. Securities and Exchange Commission, aims to boost crypto innovation. He plans to introduce exemptions and tailored rules.
Atkins highlighted a new “innovation exemption” at the SEC’s Crypto Task Force roundtable. This exemption would offer conditional relief from some regulations. This move supports the safe launch of onchain services.
Atkins explained that these exemptions would help firms developing blockchain systems. They must meet specific conditions. this allows for responsible innovation while protecting investors and ensuring market integrity.
SEC staff are also reviewing if more guidance or rule changes are needed. This helps registrants comply with securities laws when using self-executing software systems.
Atkins noted that on-chain systems have shown resilience during crises. They continued to operate as designed, unlike some centralized platforms that failed.
Most securities rules were made for conventional intermediaries. Atkins calls for regulatory flexibility to accommodate new models.
He advocates for a “rational regulatory framework.” This balances innovation with investor protection. Atkins promotes inclusive policymaking that recognizes the differences between traditional and decentralized systems.
Since taking office, Atkins has stressed structured, participatory rulemaking. The SEC’s Crypto Task Force, led by Commissioner Hester Peirce, will release its first policy report soon. This report will help create a regulatory foundation for onchain technologies.
