SEC Chair Pushes for Crypto-Friendly Overhaul Amid Government Shutdown

SEC Chair Paul Atkins has outlined a vision for transforming the regulator into a catalyst for cryptocurrency innovation rather than a barrier.

Speaking at DC Fintech Week, he emphasized that crypto and tokenization are now top priorities for the agency, joking that the SEC could soon stand for the “Securities and Innovation Commission.”

Atkins, who took over as chair in April, has sought to reverse the hardline stance of his predecessor, Gary Gensler, whose tenure was marked by frequent enforcement actions and a rigid interpretation that most digital assets were securities. In contrast, Atkins is focused on creating a clear, welcoming regulatory framework aimed at drawing crypto businesses back to the United States.

“We’re building a structure that supports innovation while protecting investors,” Atkins said, stressing the importance of attracting global talent and establishing a regulatory environment suited for the future.

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He also highlighted distributed ledger technology as one of the most promising aspects of the crypto industry and reiterated his plan to introduce an “innovation exemption.” This measure would allow companies to launch blockchain-based products more quickly, bypassing redundant layers of approval from multiple agencies. Atkins hinted at developing a “super app” for regulatory coordination among agencies overseeing digital assets.

The SEC’s work, however, is currently constrained by the ongoing government shutdown, which has left the agency with only a skeleton staff to handle emergencies. Despite this, Atkins said progress on pro-innovation measures remains a top priority.

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