Atkins Launches Crypto Regulatory Overhaul at SEC
The Securities and Exchange Commission has initiated a fundamental reorganization of its approach to cryptocurrency regulation, withdrawing high-profile lawsuits against major exchanges and establishing a dedicated task force to develop clear industry guidelines. The dramatic policy shift under Chairman Paul Atkins marks a decisive break from the previous administration’s enforcement-focused strategy and signals a new era of potential collaboration between regulators and the digital asset industry.
Industry leaders have welcomed the developments as a long-overdue step toward regulatory clarity, while traditional finance watchdogs express concerns about potential investor protection issues in the rapidly evolving sector.
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Major Enforcement Actions Abandoned Under New Leadership
The SEC has formally notified Coinbase of its intention to withdraw its lawsuit against the largest U.S. cryptocurrency exchange, ending a contentious legal battle that began in June 2023. The case had alleged the company traded at least 13 crypto assets that should have been registered as securities and targeted Coinbase’s staking program as an unregistered investment product.
“The SEC used to enforce the law without fear or favor but is now favoring the crypto industry,” Dennis Kelleher, president and CEO of Better Markets, told Reuters in response to the decision.
The agency has also paused its legal proceedings against Binance, the world’s largest cryptocurrency exchange. In a joint motion filed in February, the parties requested a 60-day stay, citing the “potential impact of a newly launched task force” focused on developing comprehensive crypto regulations.
The decisions represent a dramatic reversal for an agency that had made crypto enforcement a priority under former Chairman Gary Gensler, who frequently described the industry as the “Wild West” of finance.
Crypto Task Force Signals New Regulatory Direction
The SEC’s newly established Crypto Task Force, launched in January, marks a significant departure from the agency’s previous stance. Rather than focusing on enforcement actions, the task force is dedicated to “developing a comprehensive and clear regulatory framework for crypto assets,” according to its mandate.
“The industry is just ready for this new change,” said Coinbase CEO Brian Armstrong in comments to CNBC. “They’re ready for clear rules. And that’s our big push.”
Chairman Atkins has been explicit about his views on the previous administration’s approach to cryptocurrency regulation. In his first public appearance since taking office, he stated that innovation in the crypto industry “has been stifled for the last several years due to market and regulatory uncertainty that unfortunately the SEC has fostered,” according to CNBC.
Industry Expects Substantial Regulatory Changes
Cryptocurrency exchange executives have identified several key areas where they expect to see regulatory progress in the coming months, including token issuance standards, trading frameworks, and asset management guidelines.
The Clarity for Payment Stablecoins Act, a bill that would establish a regulatory regime for stablecoin issuers, was already working its way through Congress before last year’s election. Industry leaders are optimistic this legislation could now move forward with support from the SEC.
“I think under this new administration, we’ll see very likely rapid progress in rule making and policy making to advance this industry,” Circle CEO Jeremy Allaire told CNBC, noting that stablecoin regulation enjoys bipartisan support in Congress.
International Regulatory Landscape Continues to Evolve
While the United States appears to be moving toward a more crypto-friendly regulatory approach, other jurisdictions are developing their own frameworks with varying degrees of openness to digital assets.
Japan recognizes cryptocurrency as legal property, with transactions overseen by the country’s Financial Services Agency. South Korea has strengthened user protections through the Virtual Asset Users Protection Act, which includes requirements for record keeping and transparency. China, meanwhile, maintains strict prohibitions on cryptocurrency
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