The crypto industry is hopeful that under the leadership of Paul Atkins, the SEC will improve its relations with the crypto sector. The introduction of a 90-day plan focusing on clearer regulations, halting unnecessary litigation, and removing outdated rules is expected to rebuild trust and encourage innovation within the industry. This plan is seen as a significant step towards shaping a more balanced regulatory approach under the Trump administration.
Paul Atkins, recognized as a pro-crypto advocate, is expected to bring about potential regulatory changes that could improve crypto relations under the Trump administration. The Digital Chamber has emphasized the need for mutual trust between the SEC and the crypto industry to foster a productive and transparent ecosystem. The group believes that a more supportive regulatory environment is essential for the industry to thrive.
The SEC has been criticized for its practice of “regulating through enforcement”, which has led to confusion and stagnated innovation within the crypto space. The Digital Chamber’s Token Alliance is calling for a change in approach, urging the SEC to build trust with the industry by recognizing that most crypto participants act responsibly. A more transparent regulatory framework would benefit both sides and propel the industry forward.
The Token Alliance has proposed a 90-day plan to change the way the SEC handles cryptocurrency regulations. The plan includes reviewing current crypto-related investigations, Wells notices, and lawsuits, as well as pausing litigation in cases that do not involve fraud, investor harm, or immediate risk. The goal is to create a more balanced approach that supports innovation and rebuilds trust between the SEC and the crypto industry.
The Alliance also aims to remove outdated rules, such as the 2019 framework applying the Howey test to digital assets and the 2018 “Hinman Speech”. Additionally, it calls for the SEC to stop regulating the industry through enforcement actions and instead create clear and consistent rules to help businesses navigate the market. Addressing burdensome regulations like SAB 121 and reconsidering plans to expand regulations on decentralized finance platforms are also top priorities for the Token Alliance.
Paul Atkins is expected to bring a different approach to the SEC compared to his predecessor, Gary Gensler. Working alongside Commissioners Hester Peirce and Mark Uyeda, Atkins could guide the SEC towards a fairer and clearer regulatory system. Positive talks between the Token Alliance and Commissioners Peirce and Uyeda suggest a willingness to engage with the crypto industry and work towards a more collaborative relationship. The next 90 days will be crucial in determining whether the SEC can build trust with the crypto industry and adopt a more balanced regulatory approach.
