What Paul Atkins’ SEC Appointment Signals for the Future of Crypto

The Securities and Exchange Commission’s (SEC) policy on cryptocurrencies and digital assets at large could change with the approval of Paul Atkins as Chair. 

Appointed by President Donald J. Trump on January 20, 2025, Paul S. Atkins was confirmed by the Senate on April 9, 2025, and sworn into office on April 21. 

Unlike his predecessor, Gary Gensler, Atkins is expected to help bring regulatory clarity to the crypto space. The goal is to help usher in a new pro-crypto era in the country, in line with President Trump’s goal to make the U.S. the world’s “crypto capital.”

Here, we take an in-depth look at what Paul Atkins’ recent appointment as SEC Chair could mean for the crypto world. 

Who Is Paul Atkins?

Paul Atkins is a seasoned attorney with a long history with the SEC. He served on the staff of two SEC Chairmen between 1990 and 1994, after which he became a consultant on securities and investment management. 

Atkins then joined the SEC during President George W. Bush’s administration, serving as an SEC Commissioner from 2002 to 2008. During this time, Atkins advocated for consistency and transparency at the SEC and represented the agency at various meetings, including the U.S.-EU Transatlantic Economic Council.

He then moved to the Congressional Oversight Panel for the Troubled Asset Relief Program, where he served as a member from 2009 to 2010. He also founded Patomak Global Partners in 2009, where he pushed for the development of best practices to guide the digital sector. 

The SEC Chair then served as a board member of BATS Global Markets, Inc. from 2012 to 2015 before returning to the SEC in 2025. 

Throughout his various roles, Atkins has been an advocate for digital assets, such as cryptocurrencies, and has continually recommended market-friendly, light-touch regulations. 

The Chair criticized the Howey Test, arguing that it was old, and called for the previous Chair, Gary Gensler, to withdraw the SEC’s lawsuit against Ripple, as it was founded on the “old” legal framework. 

He has recently remarked that the agency should “enable markets to flourish” by accommodating innovative opportunities (like crypto) and openly criticized his predecessor for failing to provide regulatory clarity for digital assets. 

Atkins is not just pro-crypto in words. He served as the co-chair of the Token Alliance, an initiative established to develop best practices for digital asset issuance and trading platforms, and has disclosed that he holds approximately $6 million in cryptocurrency. 

The Current Regulatory Landscape for Crypto

Under previous SEC leadership, the agency focused more on enforcement than on providing clear regulatory frameworks for crypto businesses. 

It took an enforcement-first approach, filing lawsuits against companies like Ripple, Coinbase, and Binance, as well as threatening potential action against many more. This resulted in a shaky crypto environment, exposing investors to significant risk. 

Further, there were constant debates between the SEC and the Commodity Futures Trading Commission (CFTC) regarding the classification of cryptocurrencies (as securities or commodities) and the need for a clear regulatory framework. This, unfortunately, resulted in siloed actions from the two regulators. 

One notable point of contention between the two agencies was the classification of stablecoins, with the SEC arguing that they fell under its jurisdiction and the CFTC arguing that they were commodities. This debate was, however, cleared in 2024 when the SEC dropped its investigation into Paxos and its stablecoin, Binance USD (BUSD). 

Since then, the regulator has made significant strides to mend its relationship with the crypto industry (more on this below). 

SEC’s New Direction Under Atkins

Acting Chairman Mark Uyeda and Commissioner Hester Peirce laid the groundwork for Chair Atkins by overseeing significant development at the agency. 

One of the most significant developments is the introduction of the Crypto Task Force. The task force aims to provide clarity on the SEC’s oversight in the cryptocurrency market and recommend policies that can foster innovation without jeopardizing customers’ investments — something that was previously unheard of under the previous leadership. 

Under the new leadership, the agency also dismissed over eight cases against crypto firms and agreed to a $50 million settlement with Ripple Labs, bringing an end to years-long battles with crypto companies. 

Further, the SEC replaced its Crypto Enforcement Division with a smaller Cyber and Emerging Technologies Unit. The goal is to shift from a “regulation-by-enforcement” approach to one that focuses more on providing regulatory clarity and targeting fraud rather than technical violations.

Atkins is expected to embrace the initiatives introduced by Acting Chairman Uyeda and Commissioner Peirce. In his opening statement at his confirmation hearing, he vowed to provide “clear rules” that encourage investment, “to protect investors from fraud,” and to keep politics out of securities law enforcement. 

However, as Chairman Atkins is relatively new to the office, crypto advocates can only speculate on the extent of his alignment with Uyeda and Peirce’s initiatives. 

What the Crypto Task Force Is Doing Now

Led by Commissioner Peirce, with support from Chair Atkins, the Crypto Task Force is already making headway in its quest to provide regulatory clarity. 

The task force has held various roundtables and private meetings with players in the crypto industry to help its members better understand the legal and regulatory issues blockchain technologies and cryptocurrencies pose. 

Thanks to these meetings, the task force has already issued guidance around the security status of crypto mining, stablecoins, and meme coins. The guidance proposes a narrower scope of what falls under the SEC’s jurisdiction. 

This aligns with Atkins’ goal to provide a coherent and principled regulatory framework. 

Implications for Crypto Firms and Markets

Paul Atkins’ approval as SEC Chair has several implications for crypto firms and the broader market. These include:

Less Risk of Enforcement for Unclear or Non-Fraud Violations

Atkins has not only been a proponent of cryptocurrencies but a critic of the SEC’s “regulation by enforcement approach.” Therefore, the new Chair may steer the agency away from aggressive actions against firms, especially if they’re penalized under unclear rules or for non-fraud violations. 

This move could reduce uncertainty and legal risk for crypto firms, potentially sparking greater market participation. 

Potential Clarity on Token Classifications and Stablecoins

There’s significant legislative development on the stablecoin front with the introduction of the new stablecoin bill. Still, there’s some ambiguity regarding the classification of stablecoins and other tokens. 

Under Atkins, the SEC may provide clearer guidelines. It’s expected to give a defined classification for crypto tokens and offer clarity regarding stablecoin oversight, potentially resolving the securities vs. commodities debate. 

More regulatory clarity could lead to wider token adoption, particularly among institutional investors. 

Opportunities To Re-Engage and Shape Long-Term Policy

The “new” SEC has reaffirmed its goal to mend broken ties with the cryptocurrency industry. To support this goal, it has opened the door for industry leaders to contribute to crypto regulations through the Crypto Task Force. 

If successful, this could mark the beginning of a collaborative relationship between the SEC and market participants. This can result in more stable and innovation-friendly frameworks, as the agency would gain insights into what matters most for crypto businesses and what drives innovation. 

Ongoing Need for Compliance in Fraud and Investor Protection

While Atkins supports the lightening of regulations, the SEC Chair is not a deregulationist. He has emphasized that while the SEC will reduce enforcement actions, it’ll still prioritize fraud prevention and investor protection. 

This means that illegal activities, like wash trading and providing misleading disclosures, will still be subject to enforcement actions. 

For smooth operations, the SEC requires firms to maintain robust compliance programs to protect their customers and prevent fraudulent activities. 

Shape the Next Era of Crypto Adoption With AlphaPoint

The swearing-in of Paul Atkins as the new Chair of the SEC could result in a more crypto-friendly regulatory environment, supporting developments such as the approval of the XRP ETF. 

Under his leadership, the agency may provide regulatory clarity and reduce the number of enforcement actions against crypto businesses. Therefore, this is an ideal time to join the cryptocurrency space. 

AlphaPoint can help you do that in a matter of weeks. We offer white-label tokenization and crypto exchange software, saving you months (or years) of development work. With us, you can also access add-ons like wallet solutions and liquidity, allowing you to go to market quickly. 

Book a demo today to see how AlphaPoint can help you adopt crypto services!