Newly sworn-in SEC Chairman Paul Atkins called for a comprehensive overhaul of the agency’s regulatory framework for crypto, warning that outdated rules and enforcement-heavy policies have stifled innovation for years.

Speaking at the SEC’s third crypto task force roundtable in Washington, D.C., Atkins said the current regulatory environment “badly needs attention,” pointing to the urgent need for a “rational, fit-for-purpose framework” that can foster responsible innovation while safeguarding investors.

Atkins said in his opening remarks:

“Innovation, unfortunately, has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered.”

Atkins, who officially assumed office earlier this week after being nominated by President Donald Trump and confirmed by the Senate, used his first major public appearance to deliver a sharp critique of the SEC’s previous leadership under former Chair Gary Gensler.

Under Gensler, the agency pursued an aggressive “regulation by enforcement” approach, filing lawsuits against major crypto firms including Coinbase and Binance.

Turning the page

During Gensler’s leadership, the SEC launched high-profile lawsuits against digital asset firms, arguing many tokens qualified as unregistered securities. However, under interim chair Mark Uyeda, the agency began rolling back several enforcement actions.

Atkins said the SEC would continue gathering insights through a series of roundtables organized by its crypto task force to build a more coherent regulatory framework. The ongoing “Know Your Custodian” roundtable is the third of five planned sessions focused on shaping crypto custody guidelines and investor protections.

Returning to the SEC for his third term after previously serving as a commissioner from 2002 to 2008, Atkins positioned himself as a staunch advocate for innovation and market modernization.

A former Wall Street executive and entrepreneur, he is recognized for his deregulatory philosophy and pro-crypto stance, offering a stark contrast to the previous administration’s more confrontational approach toward the industry.

Atkins said that his top priorities as the agency’s 34th chairman include facilitating capital formation, maintaining fair and orderly markets, and protecting investors, while ensuring the US remains the best and most secure place for investment and entrepreneurship.

New mandate

Atkins pledged to collaborate with Congress, fellow commissioners, industry participants, and the Trump administration to draft clear and workable rules for the digital asset sector.

He stressed that entrepreneurs building blockchain solutions to modernize the financial system “deserve clear regulatory rules,” emphasizing that market ambiguity hinders economic growth and innovation.

The SEC’s crypto roundtables, spearheaded by Commissioner Hester Peirce, are intended to gather industry insights to inform future policymaking.

During the April 25 session, participants focused on crypto custody issues and whether existing rules under the Exchange Act, the Investment Advisers Act, or the Investment Company Act need to be revised to accommodate blockchain technology’s unique features.

Atkins praised Peirce for her “principled and tireless advocacy for common-sense crypto policy,” calling her “certainly the right person to lead the effort” to create a comprehensive regulatory framework for the industry.

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