In a significant development for the cryptocurrency landscape, Paul Atkins, the newly appointed chair of the US Securities and Exchange Commission (SEC), recently addressed the agency’s third crypto roundtable discussion focused on crypto custody. This event marks one of Atkins’ first public engagements following his swearing-in on April 21, where he shared his vision for the future of digital assets and underlined the potential huge benefits of implementing blockchain technology.
During the “Know Your Custodian” roundtable on April 25, Atkins expressed his optimism about the efficiency, risk mitigation, transparency, and reduced costs that blockchain can provide. He emphasized that his tenure would aim to establish clear regulatory frameworks to alleviate the market and regulatory uncertainties that had plagued the industry under the former chair, Gary Gensler. “I look forward to engaging with market participants and working with colleagues in the administration and Congress to establish a rational fit-for-purpose framework for crypto assets,” Atkins noted.
Atkins’ nomination as SEC chair has ignited discussions among critics who perceive it as a strategic move aligned with pro-crypto sentiments, particularly following campaign promises aimed at reducing regulation in the digital asset space. Questions have also arisen regarding potential conflicts of interest, prompting members of the Senate Banking Committee to seek clarity on Atkins’ connections to the crypto industry.
Furthermore, participation in the roundtable has drawn favorable reactions from industry leaders. Veronica McGregor, Chief Legal Officer at Exodus, remarked, “We’ve noticed that we don’t have to be as concerned about being accused of things that we’re not doing, like being broker-dealers for securities. It’s just a less scary regulatory environment in general.” However, the exact nature of future regulations remains to be seen.
The upcoming SEC crypto task force is set to conduct two additional roundtables in May and June, focusing on tokenization and decentralized finance (DeFi). As Commissioner Hester Peirce leads these initiatives, she looks forward to collaborating with Atkins to reorient the agency, hinting that more favorable regulations for the crypto industry might emerge as a result.
