Paul Atkins aims to solidify his vision for the cryptocurrency markets before political dynamics in Washington change again. As the newly appointed chair of the US Securities and Exchange Commission, he is swiftly working to “future-proof” SEC policies, a move that could shape the extent of freedom the crypto industry experiences after President Donald Trump exits office.
During a Managed Funds Association conference in New York on Tuesday, Atkins stated that the SEC plans to quickly adopt rules that could “future-proof” his agenda. He specifically mentioned the potential removal or adjustment of regulations affecting both public and private markets, which could have ramifications for the cryptocurrency sector following Trump’s tenure or Atkins’ departure.
“We have a remarkable opportunity to collaborate and, in a positive spirit, create something enduring,” Atkins remarked on US regulators joining forces. “My primary concern is to prepare for future changes. Our goal is to implement agreements and then allow the market to operate […]”
Regarding collaboration with the Commodity Futures Trading Commission (CFTC), the SEC chair remarked:
“Moving forward, particularly with digital assets, I want to caution against having two fortresses on either side of a no-man’s-land, as that strip is currently strewn with the remnants of failed products caught in the crossfire between the two agencies over the years.”
Even prior to the Senate confirming Atkins as SEC chair in April, then-acting Chair Mark Uyeda had significantly altered the agency’s approach to digital assets by closing numerous investigations and cases against crypto companies and forming a crypto task force led by Commissioner Hester Peirce.
Under Atkins’ leadership, the commission has revised listing standards for crypto exchange-traded funds (ETFs), reportedly considered allowing stocks to trade on the blockchain, evaluated the possibility of dismissing quarterly reporting requirements, and collaborated with the CFTC to “harmonize” regulations.
“[T]he momentum behind digital assets is challenging to reverse,” Andrew Forson, president of Canada-based DeFi Technologies, stated in an email to Cointelegraph. “US policy, despite differing leadership philosophies, is increasingly aligning traditional capital markets with decentralized finance.”
Could a future US president repeal all the SEC’s efforts with a single decision?
While Atkins has significant authority to advocate for rules and policies beneficial to the crypto industry, he has shown alignment with the current administration based on public remarks. As SEC chair, he can guide the agency’s enforcement actions and policy development.
Following former SEC Chair Gary Gensler’s resignation in January, the agency softened its approach to crypto enforcement, discontinuing many long-standing investigations and cases. There are concerns whether a future US president, who could be less supportive of crypto, would swiftly reverse Atkins’ agenda, as the SEC is currently doing with several of Gensler’s policies.
“Fully reversing Chair Atkins’ proposed policies would be challenging for a new SEC chair,” Forson told Cointelegraph. “However, a future administration could impose additional reporting requirements and compliance burdens—effectively hindering progress and innovation. This would resemble the early ICO days when overregulation stifled legitimate token offerings.”
Forson further added:
“If a less crypto-friendly administration takes over, existing instruments would likely be grandfathered in, but new entrants would encounter significant obstacles. Regulatory changes might dampen innovation, but they cannot dismantle the already established ecosystem.”
Related: US government shutdown enters day 1: How is the SEC still functioning?
David B. Hoppe, a technology and media attorney and founder of Gamma Law, offered a slightly different viewpoint, noting that future SEC chairs couldn’t unilaterally revoke the agency’s rules and regulations. Nevertheless, they could adjust the SEC’s “internal priorities” set by Atkins and redirect resources towards pursuing enforcement cases and investigations involving crypto companies.
“With the consensus of the SEC commissioners, a future chairperson could also reverse official SEC policies announced under Mr. Atkins,” Hoppe told Cointelegraph. “This could mean a return to the SEC’s earlier stance that crypto projects likely implicate securities laws. Although non-binding, SEC policy statements convey interpretations of SEC rules and enforcement priorities and can significantly influence market participants.”
What about SEC regulations altered by Congress?
A market structure bill currently moving through the US Senate could substantially modify SEC regulations and, if passed and signed into law, require additional congressional action to amend or undo. However, according to Hoppe, some adjustments under the market structure law may encounter fewer obstacles.
“[A]ny regulations established by the SEC and CFTC to implement the market structure law would be considerably easier to modify or repeal, as they merely need to undergo the standard notice-and-comment process (or other applicable procedure),” Hoppe explained to Cointelegraph. “In the future, the SEC or CFTC could decide to reinterpret the provisions of the market structure law and adjust regulations accordingly.”
Cointelegraph reached out to Atkins for comment but had not received a response at the time of publication.
As of Thursday, the US government had entered its ninth day of a shutdown due to lawmakers’ failure to reach a funding agreement. The SEC continues to function with reduced staff and operations, but Atkins affirmed on Tuesday that the agency was “not slowing down” despite the shutdown.
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