SEC Roundtable Unveils Paul Atkins’ New Crypto Rulemaking Plan

SEC Roundtable Highlights Shift to Pro-Crypto Policy Under Paul Atkins

The U.S. Securities and Exchange Commission (SEC) is changing its direction under new Chair Paul Atkins. In a major shift from the previous leadership, Atkins has promised a more open and clearapproach to regulating cryptocurrencies. Instead of targeting crypto firms with sudden enforcement actions, the SEC now wants to create proper rules that are easy to follow. 

This new policy was announced during the SEC’s fourth crypto task force roundtable. Atkins, appointed by President Donald Trump, said the agency is entering a “new day.” He wants to work with lawmakers to build rules that fit the digital asset space and support its growth.This shift is a major departure from the approach of previous SEC Chair Gary Gensler, who was viewed as aggressive and frequently opaque.

From Crackdowns to Clear Rules

Under Gensler, the SEC tended to pursue crypto businesses without effectively guiding them. Numerous cases were brought and subsequently dismissed. The old method made it hard for businesses to know what was allowed and what wasn’t. Atkins plans to change that by using the SEC’s powers to create fair standards, especially around how crypto assets are issued, stored, and traded.

Atkins also talked about updating the rules on custody. This could allow funds and advisers to hold crypto assets directly, as long as certain conditions are met. He also wants to relook at the agency’s broker-dealer rules and possibly allow more room for new crypto products.

Focus on Tokenization and Innovation

He believes that tokenization and blockchain provides great benefits. Securities which are tokenized become like conventional financial products, but they operate with blockchain technology. It could assist in enabling fast trading, affordable and easy to access. Organisations like Franklin Templeton and BlackRock have already begun working with tokenized treasury funds.

Tokenization might also enhance liquidity, that means making it easier to buy or sell investments that were once hard to trade. For example, things like real estate or private company shares could become easier to trade if they are turned into tokens on a blockchain.

As of May 12, around $22.6 billion worth of real-world assets have already been moved onchain, according to RWA.xyz. This figure has increased by 7.6% over the past month alone. Stablecoins, or digital assets that are backed by assets in the real world such as U.S. treasury bills, are a large part of this trend. They now have a market cap of $243 billion, with Tether's USDt at the front at $150.6 billion as per the reports of CoinMarketCap.

Looking Ahead

Crypto firms and investors have welcomed this new stance from the SEC. The focus is now shifting toward creating a fair environment for innovation while still protecting investors. Industry leaders believe this friendlier approach can help the U.S. become a global leader in blockchain and crypto technology.

Meanwhile, the agency is also dealing with past troubles. The United States has suggested a two-year jail term for Eric Council Jr., who is accused of breaching the SEC's X (formerly Twitter) account. His fake tweet announcing premature Bitcoin ETF approval triggered huge market fluctuations.

With these reforms and tests on the horizon, the SEC in Atkins' era is poised to have a big say in what the future holds for crypto in the U.S.