The United States Securities and Exchange Commission (SEC) is moving swiftly to establish “future-proof” guidelines for crypto markets under the leadership of its new chairman, Paul Atkins. Atkins aims to solidify his vision for the crypto industry before the political landscape in Washington undergoes another shift. As the current administration’s term progresses, Atkins is pushing for regulations that could determine the level of freedom the crypto industry will enjoy after President Donald Trump leaves office.
At a recent conference hosted by the Managed Funds Association in New York, Atkins emphasized the SEC’s intention to adopt rules that could “future-proof” his agenda. He specifically mentioned the removal or weakening of regulations in public and private markets that could impact the cryptocurrency industry following the departure of Trump or Atkins. Atkins expressed his desire to create a lasting impact, stating, “We have a great opportunity, I think, to come together and create something lasting in the spirit of what is possible. My main concern is to future-proof this against future possible changes. What we need to do is implement things, agree things and then let the market work.”
Collaboration with the Commodity Futures Trading Commission (CFTC)
Regarding the SEC’s collaboration with the CFTC, Atkins warned against creating a regulatory environment with “two fortresses on either side of a no-man’s land strip.” He emphasized the need for cooperation, stating that the current situation is “currently littered with the corpses of potential products that have died in the crossfire of the two authorities over the years.” 
Prior to Atkins’ confirmation as SEC chairman in April, the agency’s approach to digital assets had already undergone significant changes under the leadership of then-acting chairman Mark Uyeda. The SEC had concluded several investigations and proceedings against crypto companies and established a crypto task force under Commissioner Hester Peirce. Under Atkins, the commission has continued to evolve its approach, changing listing standards for cryptocurrency exchange-traded funds (ETFs), considering the possibility of trading stocks on the blockchain, and abandoning quarterly reporting requirements.
Reversing SEC Regulations
Andrew Forson, president of Canada-based DeFi Technologies, believes that the dynamics behind digital assets are difficult to reverse. He stated, “US policymakers have increasingly aligned traditional capital markets with decentralized finance despite differing governance philosophies.” However, some experts wonder whether a future US president could undo the SEC’s work with the stroke of a pen. According to Forson, it would be challenging for a new SEC chairman to completely reverse Atkins’ proposed policies, but a future administration could introduce additional reporting requirements and compliance burdens, effectively slowing progress and innovation.
David B. Hoppe, a technology and media lawyer and founder of Gamma Law, offered a slightly different perspective, stating that future SEC chairs cannot unilaterally roll back the agency’s rules and regulations. However, they could change the SEC’s “internal priorities” and shift resources back to pursuing enforcement cases and investigations against crypto companies. Hoppe noted that the incoming chairman could also reverse the official SEC policy announced under Atkins, representing a return to the SEC’s previous stance that crypto projects are presumed to implicate securities laws.
SEC Regulations and Congressional Changes
A market structure bill currently before the US Senate could significantly alter SEC regulations. If passed and enacted, it would require another act of Congress to amend or repeal it. However, according to Hoppe, some of the changes in the Market Structure Act are likely to pose fewer challenges, as any regulations adopted by the SEC and CFTC to implement the act could be amended or withdrawn through the standard notice and comment process.
Cointelegraph reached out to Atkins for comment but had not received a response at the time of publication. The US government is currently in its ninth day of gridlock due to lawmakers’ failure to reach an agreement on a funding bill. Despite the shutdown, the SEC continues to operate with reduced staff and operations, with Atkins stating that the agency is “not slowing down.”
For more information on the SEC’s regulations and their impact on the crypto industry, visit https://cointelegraph.com/news/paul-atkins-sec-future-proof-regulations?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
