Public Input to Replace Lawsuits in New Crypto Rulemaking
The U.S. Securities and Exchange Commission (SEC) is taking a fresh approach to cryptocurrency regulation, moving away from its previous enforcement-driven tactics. In a major policy shift, SEC Chair Paul Atkins announced that the agency will prioritize creating clear rules for the crypto industry through public engagement instead of relying on lawsuits.
This change marks a significant departure from the SEC’s earlier strategy, which was criticized for stifling innovation and leaving crypto firms in legal uncertainty. Atkins emphasized the importance of building a regulatory framework that encourages responsible innovation while protecting investors. The SEC aims to clarify how digital assets should be issued, held, and traded—offering much-needed guidance to the rapidly growing sector.
New Regulations Coming Soon as Crypto Task Force Drafts Rules
The SEC’s dedicated Crypto Task Force is currently working on a new set of rules, expected to be released in the coming months. These regulations will focus on creating practical standards that support industry growth without compromising investor protection. According to Atkins, the goal is to foster a regulatory environment that discourages bad actors while allowing legitimate players to thrive.
In another bold move, Atkins revealed that the SEC will shut down FinHub, the agency’s innovation-focused office. He explained that innovation should be a core part of the entire SEC—not siloed in one department. The shift suggests the agency is aiming for a more cohesive and forward-thinking regulatory approach.
Since the departure of former SEC Chair Gary Gensler, the agency has taken a more crypto-friendly tone. Several enforcement actions have been dismissed, and the SEC has offered more clarity on issues like crypto staking. These steps indicate a broader effort to rebuild trust with the crypto community and promote responsible growth in the digital asset space.
