Activity

It appears there’s been a significant shift in leadership at the U.S. Securities and Exchange Commission (SEC) in early 2025, and with it, a new approach to cryptocurrency regulation.
Paul Atkins has taken over as the new SEC Chair, replacing Gary Gensler.
Atkins has indeed “unleashed a plan to merge crypto and securities under one roof,” aiming for a more balanced and innovation-friendly approach to digital asset regulation. He outlined his vision at the SEC Speaks conference on May 19, 2025.
Here are the key takeaways from his plan:
* Allowing SEC Registrants to Custody and Trade Both Securities and Non-Securities: Atkins explicitly stated his desire for the SEC to permit registered firms to custody and trade both traditional securities and “non-securities” (like Bitcoin and Ethereum) within a single, federally regulated framework. He believes this could streamline operations, reduce costs for investors, and bring non-security trading into a regulated environment more quickly.
* Shift from Enforcement-First to Clearer Rules: Atkins criticized the previous SEC leadership’s “head-in-the-sand” and “enforcement-first” approach to crypto. He emphasized the need for transparency, engagement, and clear “rules of the road” for the issuance, custody, and trading of crypto assets.
* Drafting Formal Rule Proposals: The SEC staff, under Atkins’ direction, has begun drafting formal rule proposals related to cryptocurrency, signaling a move towards a more structured regulatory environment.
* Integrating FinHub: Atkins has requested congressional approval to integrate the functions of the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) into other parts of the agency. He believes FinHub’s original mission to foster innovation has been overshadowed, and this integration will embed innovation more broadly into the SEC’s core culture.
* Focus on Investor Protection and Innovation: While pushing for clearer regulation and fostering innovation, Atkins still emphasized the importance of investor protection, aiming to strike a balance between encouraging growth and mitigating risks in the evolving digital asset market.
* Establishment of a Crypto Task Force: Even before Atkins’ confirmation, in January 2025, then-Acting Chairman Mark T. Uyeda announced the formation of a new Crypto Task Force, led by Commissioner Hester Peirce. This task force is focused on developing a comprehensive and clear regulatory framework for crypto assets, providing realistic paths to registration, and crafting sensible disclosure frameworks.
This marks a significant departure from the more enforcement-heavy stance seen under former Chair Gary Gensler, suggesting a more collaborative and rule-based approach to crypto regulation by the SEC in 2025.

Video courtesy of Interactive Brokershome

Video courtesy of Interactive Brokers