SEC Chair Pledges Clear Rules to Enable On-Chain Capital Formation

In his first major policy address, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins announced a sweeping shift in the agency’s stance toward digital assets. 

Moving Beyond Enforcement

Speaking at the Organization for Economic Co-operation and Development (OECD), Atkins pledged that the SEC would move away from enforcement-driven tactics and instead adopt a transparent rulemaking approach designed to foster innovation and capital formation on-chain.

Atkins criticized past regulatory practices that, in his view, left crypto firms spending more on legal battles than on product development. He argued that this approach stifled innovation and pushed jobs and capital overseas, claiming,

Entrepreneurs must be able to raise capital without facing endless legal uncertainty.”

Project Crypto: A New Framework

The SEC chair also highlighted the agency’s new initiative, Project Crypto, which aims to modernize financial regulation to meet the demands of digital markets. The program seeks to establish a unified regulatory framework that will allow platforms to integrate trading, lending, and staking services under consistent oversight. Atkins described this effort as a key step toward creating “super-app” style platforms capable of broadening market access and enhancing competition.

Alignment With White House and Congress

Atkins’ remarks align closely with directives from the Trump administration and Congress. President Donald Trump has positioned the United States to become the “crypto capital of the world,” with federal regulators working under a blueprint drafted by the President’s Working Group on Digital Asset Markets. The Congressional Working Group has similarly pushed regulators to update “outdated rulebooks,” a move Atkins believes makes the timing of Project Crypto particularly significant.

Atkins said, 

“President Trump calls America a ‘nation of builders. Under my chairmanship, the SEC will encourage those builders, not suffocate them under red tape.” 

He added that the goal is to “spark a golden age of financial innovation on U.S. soil,” whether through tokenized stock ledgers or new classes of digital assets.

Clarifying the Status of Tokens

A central theme of his speech was the classification of digital assets. Atkins reiterated his position that “most crypto tokens are not securities,” marking a notable departure from previous SEC interpretations. He stated that clearer guidelines would reduce compliance ambiguity, encouraging firms to develop and scale within the United States rather than abroad.

Despite his focus on innovation, Atkins emphasized that the SEC’s core mission remains unchanged: protecting investors and ensuring fair markets. He concluded by reaffirming that regulatory modernization does not mean abandoning safeguards but rather creating an environment where technology and compliance can advance together.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice