SEC Chairman Paul Atkins Announces New Cryptocurrency Regulation Framework – Coincu

SEC Chairman Paul Atkins revealed on June 4 that the agency would pursue a new regulatory framework for cryptocurrency, announced at a Senate Appropriations Committee hearing in Washington, D.C.

The new regulatory approach by the SEC aims to establish clear rules for crypto assets, fostering innovation while ensuring investor protection. Atkins called for an end to enforcement-led regulation, emphasizing a “notice and comment” process.

SEC’s Strategy: Shifting to Rulemaking in Cryptocurrency Oversight

Paul Atkins, SEC Chairman, aims to redefine the agency’s role in crypto oversight. The decision to integrate crypto policy into core SEC functions, dissolving FinHub, highlights a significant change. According to Atkins, “we will use our existing authority to develop standards that meet market needs and allow innovation, not stifle it.”

The transition to rulemaking underscores a pivotal change in the SEC’s regulatory approach. The focus on issuance, custody, and trading signals potential clarity for Ethereum (ETH), Bitcoin (BTC), and new projects. This move promises greater legal certainty for DeFi platforms and blockchain technologies operating in the U.S.

Market reactions to the announcement included cautious optimism among industry stakeholders. Crypto developers and compliance experts have generally welcomed the change, expecting increased regulatory certainty. As Paul Atkins reiterated, “Clear rules are essential for investors,” echoing a broader call for rational regulation.

“A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law. Clear rules of the road are necessary for investor protection against fraud—not the least to help them identify scams that do not comport with the law.” — Paul Atkins, SEC Chairman

Market Expectations: Governance and Institutional Embrace

Did you know? The SEC’s move toward structured rulemaking marks a shift from approaches under Gary Gensler, offering potential legal certainty akin to recent U.S. spot Bitcoin ETF approvals.

Based on CoinMarketCap data, Ethereum (ETH) currently trades at $2,634.90, with a market cap of $318.09 billion. The 24-hour trading volume stands at $15.60 billion, reflecting a 10.87% decrease. Ethereum’s circulating supply is approximately 120.72 million coins.

According to Coincu, the SEC’s strategy could lead to increased institutional involvement in compliant crypto ventures. The focus on clear standards may facilitate growth in DeFi protocols, like decentralized exchanges and layer-two solutions. Industry participants anticipate a robust framework supporting fair and transparent market operations.