SEC Chair Paul Atkins said Friday that innovation in the crypto sector has been “stifled for the last several years,” pointing to the need for a significant overhaul in how digital assets are regulated. Speaking at a roundtable hosted by the SEC’s newly formed Crypto Task Force, Atkins noted that the current regulatory framework appears outdated and inadequate for today’s evolving crypto markets.
The session, held at the SEC’s headquarters in Washington, D.C., marked an important shift in tone for the agency following its decision to drop the high-profile lawsuit against Ripple. Joined by fellow commissioners Caroline Crenshaw, Mark Uyeda, and Hester Peirce, Atkins emphasized a move from confrontation toward collaboration. The event focused on crypto custody—the secure storage of digital assets—and brought together major industry players including Anchorage Digital Bank, Fidelity Digital Assets, Kraken, and BitGo.
Atkins said the SEC has room to act even without new legislation from Congress, though he welcomed legislative backing where appropriate. Peirce echoed the need for balanced reforms, especially in custody rules, acknowledging the operational differences between traditional custodians and crypto-native solutions like cold wallets. She stressed that in some cases, self-custody could be the safer option for investors.
The roundtable follows a string of regulatory shifts under the current administration. Earlier this year, the SEC repealed Staff Accounting Bulletin 121, which had treated crypto assets as liabilities for banks, stifling institutional adoption. That rollback was seen as a win for the industry and marked a departure from former Chair Gary Gensler’s more aggressive approach. Additionally, the SEC issued guidance in February stating that most meme coins are not considered securities, a move seen as beneficial to projects linked to President Trump and his affiliates. The president’s own meme coin, $TRUMP, launched in January with a current market cap of around $2.7 billion, much of which is reportedly held by Trump-associated entities.
Despite these developments, Atkins declined to comment on the president’s direct involvement in crypto ventures. Meanwhile, the SEC reaffirmed it would continue to enforce compliance among foreign firms, including possible delistings of Chinese companies that fail to meet U.S. standards. As the agency revisits the stalled custody rule proposed under Gensler, Friday’s meeting suggested growing openness to industry input in shaping crypto regulation going forward.
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