Paul Atkins, chairman of the US Securities and Exchange Commission (SEC), has pledged to provide firms with advance notice before imposing sanctions.
Speaking to the Financial Times, SEC Chairman Paul Atkins said the agency will give cryptocurrency companies advance notice before taking enforcement action.
Stating that this is a complete departure from the Biden administration’s enforcement-focused approach, Atkins explained that the SEC will notify companies before launching mandatory investigations.
With this statement, Atkins emphasized that the SEC was established to pursue fraudsters, not businesses.
“From now on, the SEC will always give companies advance notice before taking enforcement actions. The SEC was established to catch fraudsters, not companies.”
Atkins, who stated that he had shelved his aggressive enforcement policy and adopted a more moderate approach, criticized the SEC’s past operating methods as unreasonable.
Atkins argued that in recent years the SEC has failed to follow precedent and ignored predictability, shooting first and asking questions later, calling it an unreasonable form of regulation.
“The SEC hasn’t followed precedent in recent years and has ignored predictability. It’s like firing a gun and then asking questions without warning.
“We will move away from working in a sanctions-focused way like the Biden administration.”
Finally, referring to the FTX collapse, Atkins stated that although many people lost their funds in the incident, assets in the US derivatives sector were safely preserved and returned to clients.
The SEC chairman added that this is a prime example of how U.S. investor protection systems can help when offshore regulations fall short.
*This is not investment advice.