After years of regulatory tension with the crypto industry, the U.S. Securities and Exchange Commission may be heading in a new direction.
Under Chair Paul Atkins, the agency appears intent on turning from an enforcer into a collaborator.
Atkins, who took over the SEC in April, used his appearance at DC Fintech Week to signal a fundamental shift in priorities. Rather than policing crypto from the sidelines, he said, the Commission now sees digital assets and tokenization as its “first order of business.”
From Enforcement to Engagement
The remark stood in stark contrast to the cautious, lawsuit-driven strategy of his predecessor, Gary Gensler. Gensler’s term was marked by courtroom battles with major exchanges and a rigid stance that most tokens qualified as securities – a view that many argued slowed U.S. competitiveness in digital innovation.
Atkins has made clear that he wants to reverse that perception. He has publicly endorsed the idea of an “innovation exemption,” a fast-track path for companies experimenting with on-chain products to operate without the heavy regulatory delays that have pushed many startups overseas. His goal: to make the U.S. a magnet for blockchain development once again.
Speaking with a hint of humor, he quipped that the agency should really be called the “Securities and Innovation Commission.” But behind the joke lies a serious intent – to create a single, cooperative environment that bridges the gap between regulators and innovators.
Toward a Unified Rulebook
Atkins has also floated the idea of a joint registration framework across federal agencies, arguing that companies shouldn’t have to navigate a maze of overlapping requirements. “If every agency is chasing the same goal,” he said, “why make innovators jump through five sets of hoops?”
He has described distributed ledger technology as the most transformative development in modern finance and wants the SEC to help nurture it rather than restrict it.
Politics Slow the Momentum
Despite the shift in tone, progress has been slowed by Washington’s ongoing government shutdown. The SEC is operating with minimal staff, handling only emergencies while most employees remain furloughed. That pause has delayed implementation of several initiatives, including the proposed innovation exemption Atkins hopes to roll out before year-end.
Still, his message was unmistakable: the agency that once symbolized crypto resistance wants to reinvent itself as a platform for experimentation. If Atkins gets his way, the SEC could soon be known less for enforcement – and more for enabling the next generation of financial technology.
