US A Decade Behind In Crypto Innovation And Regulation: Paul Atkins

Securities and Exchange Commission Chair Paul Atkins has admitted that the US is at least a decade behind its rivals in crypto regulation and innovation. 

However, Atkins has promised to build a strong framework and turn the regulator into the “Securities and Innovation Commission.”

US A Decade Behind In Crypto Regulation 

SEC Chair Paul Atkins believes the United States is years behind its rivals when it comes to regulating digital assets. However, Atkins has promised to make catching up with the SEC’s top priority. Atkins warned that regulatory uncertainty has eroded America’s competitiveness, with other regions racing ahead in terms of crypto regulations. The SEC Chair’s remarks indicate the growing acknowledgment within Washington that outdated and unclear regulatory frameworks have stifled innovation and pushed many crypto projects abroad. 

“The crypto aspect is our job one. We want a strong framework that attracts people who may have fled.”

Atkins stated that a favorable regulatory environment will ensure that innovation can thrive in the US instead of moving offshore. 

“We’re building a structure that supports innovation while protecting investors, balancing growth with guardrails.”

SEC Working Full-Time On Crypto Regulation 

Atkins stated that the SEC is working “full-time” on crypto regulation and coordinating with other policymakers to replace ad-hoc enforcement with a comprehensive rulebook that provides certainty to companies and guarantees consumer protection. At the center of Atkins’ plan is the SEC’s “Innovation Exemption”, a proposed regulatory sandbox for crypto products. 

Atkins revealed that the exemption will enable novel crypto ventures to enter the market without having to go through a full-blown securities registration process. The Innovation Exemption will allow startups and established companies to experiment under supervision, and allow the SEC to waive certain regulatory requirements for a limited time. According to Atkins, this would allow crypto projects to prove themselves in the market without facing undue delays. 

However, Atkins clarified that this flexibility will not come at the cost of investors, assuring that investor protections and safeguards would remain in place, and that the SEC will closely monitor exempted projects. 

“The goal is to balance investor protection with the need for innovation.”

A Friendlier SEC 

The SEC Chair’s comments highlight the dramatic shift in the regulator’s approach to crypto under the Trump administration. Atkins has been a long-time advocate for crypto and market innovation, and succeeded Gary Gensler, whose term as SEC Chair was characterized by an aggressive “regulation-by-enforcement” approach towards crypto. However, Atkins plans to make the US a hub for crypto innovation and craft rules that encourage responsible innovation.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice