SEC to Revamp Cryptocurrency Regulations Under New Chair Paul Atkins – Coincu

Paul Atkins, the newly appointed Chairman of the U.S. Securities and Exchange Commission (SEC), addressed significant changes in cryptocurrency regulation. He announced the agency’s plan during the SEC’s fourth cryptocurrency roundtable on Monday.

Atkins’s approach signals a move towards comprehensive guidelines in crypto asset issuance, custody, and trading. This shift is seen as a departure from the previous administration’s methods built upon ad hoc enforcement actions that were criticized for being insufficiently adaptive to emerging blockchain technologies.

SEC to Shift Focus from Enforcement to Clear Crypto Guidelines

Paul Atkins announced changes to the U.S. SEC’s regulatory approach, emphasizing a structured framework over past reliance on enforcement. He proposed developing guidelines for assets as securities, rolling out modernized rules, and exploring exemptions where current laws do not fit.

Immediate implications include a review of custody rules, potentially allowing funds to engage in self-custody under conditions. Atkins aims to clarify registration forms, which could increase crypto asset issuance by resolving previous compliance bottlenecks stemming from outdated reporting requirements.

Reactions in the crypto community, from market professionals to regulatory experts, have been noticeably positive. Atkins’s focus on formal rulemaking and guidance contrasts sharply with his predecessor’s enforcement-first strategy. The inclusion of clear ‘rules of the road’ is seen as a vital step toward maintaining order in rapidly evolving crypto markets.

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. – Paul Atkins, Chairman, U.S. Securities and Exchange Commission (SEC)

Crypto Market Awaits Impact of New SEC Guidelines

Did you know? The SEC’s previous stance under Gensler led to just a handful of registered crypto offerings. This created bottlenecks that some argue limited U.S. innovation in a burgeoning global market.

Recent data from CoinMarketCap shows Ethereum (ETH) currently priced at $2,499.76. Over 24 hours, ETH experienced a change of -1.71%, with a notable 7-day gain of 40.96%. The market cap stands at $301.79 billion, and its market dominance is 9.09%.

Coincu’s research team suggests that the proposed SEC guidelines might drive increased institutional interest in digital assets. By offering a clearer regulatory environment, more U.S.-based projects could emerge, potentially stabilizing both retail and institutional participation in the cryptocurrency market.