The ongoing evolution of cryptocurrency regulation in the United States took a significant turn yesterday as Securities and Exchange Commission (SEC) Chair Paul Atkins revealed a strategic pivot. Speaking to a Senate subcommittee, Atkins emphasized that the SEC’s approach to crypto oversight will be guided by “notice and comment rulemaking,” a shift from the agency’s previous stance of regulation by enforcement. This move potentially signals a more collaborative and transparent regulatory process in a sector often marred by ambiguity and contention.
A New Path for Crypto Governance
Atkins’ declaration represents a potential lifeline for the crypto industry, which has frequently found itself at odds with regulators. The SEC’s historical reliance on enforcement has led to numerous legal skirmishes, creating a cloud of uncertainty over digital assets. Now, with this fresh commitment to rulemaking through public engagement, the agency seems poised to chart a course that could foster dialogue and clarity. As explored in The SEC Can Learn From the IRS in Making Regulation Simpler for Crypto, simplifying regulatory frameworks could be key to achieving this clarity.
“Rulemaking through notice and comment allows for broader industry input and can lead to more nuanced and effective regulation,” said Julia Tuttle, a blockchain policy analyst based in New York. “This approach could potentially harmonize regulatory frameworks and reduce the confrontational dynamics we’ve seen in the past.”
Industry Reactions and Implications
The crypto market, known for its volatility, echoed with cautious optimism following Atkins’ remarks. Stakeholders are hopeful that this could herald a more predictable regulatory environment, crucial for attracting institutional investment and fostering innovation.
Not everyone is convinced, however. Some industry watchers warn that while the notice and comment process is more inclusive, it can also be protracted and susceptible to lobbying. “It’s a double-edged sword,” noted Oliver Grant, a fintech attorney. “While it opens the door for industry voices, it also means that big players with resources could sway the outcomes, potentially sidelining smaller innovators.” This concern is echoed in Crypto Coalition Tells SEC Staking Is ‘Essential Good,’ Not a Security, where the role of influential stakeholders in shaping policy is critically examined.
The SEC’s shift is particularly timely as key developments loom on the horizon. The rise of decentralized finance (DeFi) platforms, coupled with emerging technologies like central bank digital currencies (CBDCs), presents both challenges and opportunities for regulators. Atkins’ approach may be designed to accommodate the rapid pace of technological change while ensuring investor protection.
Historical Context and Future Directions
The SEC’s pivot comes against a backdrop of heightened scrutiny and enforcement actions that have punctuated the crypto landscape in the past few years. High-profile cases, such as those involving Ripple Labs and other prominent crypto entities, have underscored the tension between innovation and regulation.
Looking ahead, Atkins’ commitment to a new regulatory methodology raises several questions. How will the notice and comment process unfold in practice? Can it achieve the delicate balance between safeguarding investors and allowing for the organic growth of the crypto ecosystem? And crucially, how will this strategy align with international efforts to regulate a borderless technology?
The path forward is fraught with complexities, yet it also presents an opportunity for the SEC to redefine its relationship with the crypto world. As 2025 progresses, stakeholders will be watching closely to see how Atkins’ vision materializes, and whether it can indeed pave the way for a more stable and innovative financial future.
Source
This article is based on: SEC to shape crypto policy with ‘notice and comment,’ says Atkins
Further Reading
Deepen your understanding with these related articles:
- US crypto groups urge SEC for clarity on staking
- UK’s FCA Seeks Public and Industry Views on Crypto Regulation
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
