SEC Chair Paul Atkins announced that the agency will move quickly to implement the President’s Working Group recommendations on crypto regulation.
It aims to foster innovation and provide greater clarity in digital asset markets. Specifically, the initiative seeks to shift away from enforcement-led oversight toward a rules-based approach that balances investor protection with technological advancement.
Notably, Atkins made the disclosure during the Wyoming Blockchain Symposium. Central to this vision is the President’s Digital Assets Group, which will lead the next phase of digital asset regulation in the United States.
The group previously released a roadmap urging regulators to adopt a more collaborative and innovation-friendly approach. Atkins has reiterated the zeal to follow the recommendations as soon as possible.
We have a president who understands the importance of making America the crypto capital of the world.
— Paul Atkins (@SECPaulSAtkins) August 19, 2025
Breaking from Past SEC Policies
This marks a significant departure from the policies of former Chair Gary Gensler, who set a stricter regulatory tone. Gensler frequently argued that most cryptocurrencies should be subject to existing securities laws. Critics claimed that under Gensler’s tenure, the SEC’s “regulation by enforcement” approach prompted many developers to move their projects overseas.
Atkins takes a different stance, arguing that only a small fraction of tokens should be classified as securities. According to him, what defines a security is not the token itself, but how it is marketed, packaged, and sold to investors.
Balancing Protection with Innovation
In his speech, Atkins emphasized the need to strike a balance between investor safety and technological progress. He said the SEC will design rules that are firm enough to curb fraud. However, these rules will also be flexible enough to adapt to evolving technology.
As part of this shift, the Commission plans to introduce safe harbor periods that will allow startups time to build before facing heavy compliance requirements. It will also create tailored exemptions for digital assets, providing a more flexible approach. This marks a shift away from the ‘one-size-fits-all’ model of traditional securities regulation.
In addition, the SEC will develop new disclosure frameworks that provide transparency to investors while reducing unnecessary barriers for innovators.
Atkins argued that these measures could enable projects such as initial coin offerings (ICOs), airdrops, network rewards, and decentralized applications to grow responsibly under regulatory supervision.
The venture capital community and advocacy organizations have welcomed the announcement. Firms such as Andreessen Horowitz and groups like the DeFi Education Fund have long urged regulators to create exemptions and safe harbors.
According to these groups, clearer rules will give developers confidence to innovate in the US instead of relocating their operations to more flexible jurisdictions. They argue that an updated framework is essential to maintain America’s leadership in the digital economy.
Cooperation Across Government
Furthermore, Atkins emphasized that the SEC will not act in isolation. Instead, it will work closely with Congress, the White House, and other federal agencies to ensure that US rules remain consistent, transparent, and aligned with global standards.
He noted that digital assets are already a global industry, and inconsistent rules within the US could drive innovation abroad.
Enforcement Still Focused on Fraud
While Atkins promised a more open approach, he made it clear that the SEC will continue to crack down on fraud, scams, and abusive practices. The difference, he said, lies in ensuring legitimate projects are not caught in broad enforcement sweeps.
Atkins acknowledged that the SEC alone cannot guarantee long-term clarity. True certainty for businesses, he explained, will depend on Congress passing new legislation that addresses the unique nature of digital assets. Until then, the SEC’s new framework will serve as a bridge.
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