Andrew Grant
Key Takeaways
- SEC is drafting formal rules to regulate crypto markets and restructuring its approach to digital assets.
- Plans to integrate FinHub’s functions throughout SEC, aiming to foster innovation more broadly.
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SEC Chairman Paul Atkins has urged the Commission to allow registered firms to custody and trade securities and non-securities, like Bitcoin and Ethereum, under a single, regulated structure.
Atkins believes that such a framework would streamline operations, reduce costs for investors, and accelerate the integration of digital assets into a federally supervised environment.
“I would like the Commission to allow SEC registrants to custody and trade both securities and non-securities under one roof,” said Atkins during his remarks at the SEC Speaks conference on Monday.
“Enabling this could reduce costs for investors while allowing non-security trading to enter a regulated environment at the federal level expeditiously,” he added.
Atkins also confirmed that the SEC had started drafting formal rule proposals to govern crypto markets. He noted that while formal rulemaking is underway, SEC staff are still issuing informal guidance to help clarify how existing laws apply to crypto.
“It is a new day at the SEC. While I have directed Commission staff across our policy Divisions to begin drafting rule proposals related to crypto, the staff continue to “clear the brush” through staff-level statements,” said the SEC chairman.
Atkins acknowledged the agency’s previous regulatory approaches had created uncertainty, describing them as first taking a “head-in-the-sand approach” before shifting to “regulation through enforcement.”
Crypto market participants, he said, were often invited to “just come in and talk,” only to be met with subpoenas. The new approach aims to replace that ambiguity with structured engagement and clear rules.
The rulemaking initiative is part of a broader institutional reset under Atkins’ leadership. The agency is also seeking Congressional approval to dissolve its Strategic Hub for Innovation and Financial Technology (FinHub) and integrate its functions throughout the SEC.
According to Atkins, FinHub’s original mission has been overshadowed, with many now viewing it as a tool for enforcement rather than a platform that supports innovation.
“I will ensure that innovation will be ingrained in the culture SEC-wide, as it should be, and not focused on one small office,” Atkins said.
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