SEC Chair Highlights Key Focus Areas for Upcoming Regulatory Initiatives
Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), recently shared with Fox Business that the agency is committed to developing crypto regulations and plans to introduce an innovation exemption aimed at preserving the U.S.’s position in the realm of digital finance.
Summary
- During an interview with Maria Bartiromo, Paul Atkins confirmed that the SEC is working on an innovation exemption set for the end of 2025.
- This exemption aims to empower crypto enterprises to launch their offerings without the looming threat of stringent securities regulations.
- Atkins highlighted the collaborative efforts between the SEC and the CFTC to provide a stable marketplace for new product introductions.
On September 23, Atkins discussed with anchor Maria Bartiromo the ongoing collaboration between the SEC and the Commodity Futures Trading Commission. He emphasized the importance of clarifying each agency’s responsibilities to ensure market stability.
He noted that certain projects (like single stock futures) faced setbacks primarily due to uncertainty over whether they fell under SEC or CFTC jurisdiction.
Both agencies are set to focus on regulatory framework development in the upcoming months, with an aim to establish the innovation exemption by year’s end. Atkins remarked that this is a systematic approach:
“We’re working to offer the marketplace a stable platform for introducing their products,” he stated.
This exemption is intended to facilitate crypto companies in launching their products swiftly, circumventing early bureaucratic and regulatory obstacles that often impede projects.
Atkins Compared to Gensler
During the DeFi and American Spirit roundtable in June, Atkins articulated the necessity of a conditional exemption relief framework to incentivize developers.
Meanwhile, the SEC is revising its rules, which Atkins claims will replace the antiquated securities regulations currently applied to the crypto sector.
The former SEC chairman, Gary Gensler, classified numerous cryptocurrencies as unregistered securities. Nonetheless, many prominent U.S.-based brands flourished, including Coinbase, Strategy, Robinhood, Ripple, and Circle.
Despite this, many crypto professionals argue that Gensler’s cautious stance on the emerging industry has hindered the U.S. compared to Europe and the UK regarding access to cryptocurrency markets and services. For instance, Coinbase’s staking service is unavailable in five states.
For years, Americans have encountered difficulties in participating in airdrops, acquiring spot ETFs, perpetual futures, and tokenized securities, as well as gaining access to major crypto exchanges, among other challenges. This contrasts starkly with the situation in the UK and Europe, where countries like Estonia have been offering tokenized securities since 2019.
‘Make IPOs Great Again’
Regarding initiatives not directly tied to crypto, Atkins expressed his desire to “make IPOs great again.” He underscored the necessity for everyday investors to diversify their portfolios, which is a daunting task in the current landscape.
According to the SEC chair, the number of companies going public has dropped by 50% over the last 30 years. He stated that the process of going public has become overwhelmingly burdensome in terms of regulatory compliance, reporting, and other requirements, deterring many companies from seeking public status.
The predominance of tech companies among the top public corporations amplifies risks. Thus, Atkins advocates for streamlining processes and ensuring ordinary investors have better access to private funds.
Overall, Atkins’s appearance on Bartiromo’s “Mornings with Maria” signaled the SEC chair’s intent to empower U.S. crypto firms to self-regulate and offer retail investors a wider array of investment opportunities.