- The SEC is expected to be more hands-off towards crypto under Paul Atkins.
- Trump’s SEC pick appeared before the Senate this week.
- Several SEC enforcement actions against crypto firms have been halted.
If confirmed by the US Senate to lead the Securities and Exchange Commission, Paul Atkins won’t just change the rules ― he’ll rewrite much of the agency’s crypto regulatory playbook.
That’s according to John Reed Stark, the former head of the agency’s internet enforcement unit and an outspoken crypto critic.
He said that Atkins will roll back policies that have put crypto businesses firmly in the regulator’s crosshairs.
Stark, who worked with Atkins when the latter was a commissioner at the SEC back in the 2000s, said this is consistent with his anti-regulatory stance.
For years, Atkins has pushed back on financial guardrails such as the Dodd-Frank Act, the landmark law passed in 2010 to protect depositors from reckless banking practices.
On Thursday, members of the Senate Banking Committee grilled Atkins on his response to the global financial crash of 2008.
When it comes to crypto, Atkins, a Washington lawyer, has signalled the agency will deliver relief to an industry that is rebounding after a crackdown pursued by the SEC under its former chair, Gary Gensler.
Indeed, the SEC has already begun to drop or postpone several cases against crypto companies, including Coinbase, Consensys, and Uniswap before Atkins comes aboard.
“Since 2017, I have led industry efforts to develop best practices for the digital asset industry, I have seen how ambiguous and non-existent regulations for digital assets create uncertainty in the market and inhibit innovation,” Atkins said during his hearing.
“A top priority of my chairmanship will be to work with my fellow commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.”
For the last couple of years, Stark has argued that crypto is a largely worthless enterprise with little utility for investors and prone to fraud, money laundering, and other illegal activities.
Yet he holds Atkins in high esteem.
“While I may disagree with his stances on the regulation of digital assets,” Stark posted on X, “Paul Atkins is an honourable individual and a steadfast patriot who, as the 32nd SEC chair, will lead with fairness, honesty, transparency, and accountability.”
He said Atkins would probably introduce 12 “unprecedented reforms” in the first 100 days of his tenure as chair.
While they pertained to the agency’s oversight of markets other than digital assets, Stark said the industry can expect its most desired goal — clarity.
Coupled with less legal risk from enforcement actions, it’s little wonder the crypto industry is enthusiastic about the SEC’s next phase.
Crypto market movers
- Bitcoin is down 3.2% in the last 24 hours to $84,186.
- Ethereum is down 6.5% to $1,882.
What we’re reading
- Cryptonomy offered 180% returns and ‘freedom.’ Now investors can’t get out ― DL News
- How to pick long-term winners for your portfolio — Milk Road
- Galaxy Slapped With $200 Million Fine Over Luna ‘Manipulation’ and ‘Fraud’ ― Unchained
- Why altcoin season hasn’t come — Milk Road
- BitBoy sued for defamation for calling Kevin O’Leary a ‘real-life murderer’ ― DL News
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? please contact him at osato@dlnews.com.
