SEC Chair Paul S. Atkins Pledges Clear Crypto Rulebook to Replace Enforcement-First Approach

Speaking before the Senate Appropriations Subcommittee on June 3, Atkins laid out a vision that aims to balance investor protection with support for innovation across the digital asset space.

Ending the Regulatory Gray Zone

Atkins acknowledged that regulatory uncertainty has fueled fraud and confusion in the crypto sector. He emphasized that the absence of a coherent framework has harmed both investors and legitimate innovators.

“The lack of clear regulation has encouraged fraud in the crypto market,” Atkins said. “We must protect investors while allowing the industry to grow responsibly.”

A Proactive Policy Shift

In his testimony, Atkins pledged to shift the SEC’s posture from reactive enforcement to proactive rulemaking. His plan includes:

Defining which tokens fall under securities laws Creating clear rules for crypto exchanges and custodians Encouraging compliance through guidance, not lawsuits

This marks a significant policy shift, especially as U.S. regulators face increasing pressure to catch up with frameworks emerging in Europe and Asia.

Support for Innovation, Without Compromising Security

Atkins also reassured lawmakers that promoting innovation does not mean turning a blind eye to bad actors.

His proposed framework seeks to encourage responsible innovation while closing loopholes exploited by scams, rug pulls, and fraudulent ICOs.

What’s Next?

While the SEC has not yet released a formal draft of its proposed crypto rulebook, Atkins’ testimony signals a clear change in direction. Market participants and policymakers alike will now watch closely to see how quickly the agency moves from words to action.

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