U.S. Regulation

SEC Chair Atkins Charts Pro-Innovation Path For Crypto and Tokenization Regulation

Securities and Exchange Commission Chair Paul Atkins is looking for cryptocy innovation to thrive as the agency forges its path in prioritizing the industry. Crypto and tokenization are “job one” for the SEC, Atkins reiterated on Wednesday at DC Fintech Week.  “We want to make sure that we build a strong framework to actually attract people back into the United States who may have fled, but then also be able to build a framework that makes sense for the future, so that innovation can thrive,” he said. “I’d like to say that we’re the Securities and Innovation Commission,” he added jokingly.

Atkins has taken a starkly different approach to regulating crypto following his predecessor, Gary Gensler, since becoming chair in April. Gensler took a cautious approach to crypto and brought several cases against large crypto firms, saying that most cryptocurrencies were securities, while being criticized for his regulation-by-enforcement approach.

Since April, Atkins has taken several steps toward being friendly toward digital assets. On Wednesday, Atkins also said distributed ledger technology is the most exciting part of crypto. In June, Atkins said he had directed his staff to consider an “innovation exemption” that he said would quickly allow firms to “bring on-chain products and services to market.” He has also said, he planned to put that exemption in place by the end of the year.

“We’ll be bringing various types of solutions here to the fore, like I’ve been talking about an innovation exemption, and with a goal of having like a super app where there are many different agencies that are concerned about crypto,” Atkins said on Wednesday. “But why should you have to go and register at multiple agencies if we are all focused on the same kind of goal?”

Currently, the SEC is in a standstill as the government shutdown moves into its second week. At the beginning of this month, Congress failed to reach a deal on funding, furloughing employees, and significantly limiting what federal agencies can do.  As for the SEC, that means it is currently working under an operations plan whereby it has an “extremely limited number of staff members available to respond to emergency situations,” according to guidance.

Terron Gold

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