Atkins Outlines SEC’s New Crypto Framework

On May 12, 2025, the newly appointed Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, delivered a keynote address at the opening of the fourth public roundtable of the Crypto Task Force, outlining a major shift in the agency’s approach to digital asset regulation. Atkins introduced a new policy focused on building clear, structured, and tech-adapted rules for the crypto space. 

The core pillars of the reform include token issuance, custody of digital assets, and crypto trading, emphasizing legal clarity, market transparency, and a break from the agency’s previous “regulation by enforcement” model.

His remarks confirmed a structural pivot in the SEC’s stance toward the crypto industry. Instead of relying on enforcement actions and vague invitations to “come in and register,” the new strategy calls for proactive adaptation of the regulatory framework. 

Atkins also criticized outdated disclosure requirements, specifically Form S-1, as incompatible with tokenized assets, stressing the need for updated tools.

Key Points from Paul Atkins’ Remarksа

Paul Atkins confirmed the repeal of the controversial SAB 121, which had required custodians to report clients’ crypto holdings as their own assets and liabilities. The rule faced heavy criticism for distorting financial reporting and discouraging institutional participation in compliant custody services.

Under the SEC’s new strategy, the agency will adopt a more flexible and adaptive approach. One of the proposals includes allowing self-custody for investment funds and advisors, provided they meet defined security standards. 

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Atkins proposed revisiting the current “special-purpose broker-dealer” model, which he criticized as overly restrictive and a key obstacle to healthy market development.

Furthermore, the SEC plans to introduce clear, enforceable standards for qualified custodians and address the legal uncertainty that has long stifled competition and innovation in digital asset custody.

Impact on the SEC’s Direction

Atkins’ address marked the first official signal that the era of legal uncertainty for the U.S. crypto market may be coming to an end. In place of fragmented lawsuits and inconsistent enforcement, the SEC proposes a market-driven, predictable regulatory strategy. 

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This marks a foundational shift that could reopen the door for capital inflows and blockchain product development within U.S. jurisdiction. The message is particularly significant for institutional players, hedge funds, and publicly listed companies that view tokenization as part of their strategy.

To implement the new policy, the SEC has established a dedicated crypto task force led by Commissioners Hester Peirce and Mark Uyeda. Near-term priorities include drafting regulatory exemptions, initiating public consultations on crypto asset registration frameworks, and revising custody standards. Finally, Atkins reaffirmed the agency’s commitment to working with Congress and the Trump administration to establish the U.S. as a global leader in crypto innovation.