SEC Chair Outlines Major Focus Areas for Upcoming Regulatory Initiatives
Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), recently spoke with Fox Business, revealing the agency’s commitment to formulating crypto regulations and plans to launch an innovation exemption to maintain the U.S.’s standing in the world of digital finance.
Summary
- In an interview with Maria Bartiromo, Paul Atkins confirmed that the SEC is working towards an innovation exemption targeted for the end of 2025.
- This exemption is designed to enable crypto businesses to launch their services without the pressure of strict securities regulations.
- Atkins noted the cooperative efforts between the SEC and the CFTC to create a stable marketplace for new product launches.
On September 23, Atkins discussed with anchor Maria Bartiromo the collaborative work underway between the SEC and the Commodity Futures Trading Commission. He emphasized the need to define each agency’s roles to secure market stability.
He observed that some projects, like single stock futures, faced obstacles mainly due to uncertainty about SEC or CFTC jurisdiction.
Both agencies are preparing to concentrate on developing a regulatory framework in the coming months, aiming to finalize the innovation exemption by the end of the year. Atkins explained this as a systematic approach:
“We’re striving to provide the marketplace with a stable platform for introducing their products,” he asserted.
This exemption is meant to help crypto firms launch their products quickly, bypassing initial bureaucratic and regulatory challenges that often hinder projects.
Atkins Compared to Gensler
At the DeFi and American Spirit roundtable in June, Atkins discussed the need for a conditional exemption relief framework to motivate developers.
Meanwhile, the SEC is updating its regulations, which Atkins argues will replace outdated securities laws currently affecting the crypto industry.
The former SEC chairman, Gary Gensler, categorized several cryptocurrencies as unregistered securities. Nevertheless, many notable U.S.-based brands have thrived, such as Coinbase, Strategy, Robinhood, Ripple, and Circle.
However, numerous crypto industry professionals contend that Gensler’s cautious approach towards the emerging sector has put the U.S. at a disadvantage compared to Europe and the UK in terms of access to cryptocurrency markets and services. For example, Coinbase’s staking service is unavailable in five states.
For years, U.S. citizens have faced challenges in participating in airdrops, obtaining spot ETFs, perpetual futures, and tokenized securities, as well as accessing major crypto exchanges, in stark contrast to the UK and Europe, where countries like Estonia have been providing tokenized securities since 2019.
‘Make IPOs Great Again’
In discussions unrelated to crypto, Atkins expressed his goal to “make IPOs great again.” He highlighted the necessity for everyday investors to diversify their portfolios, a challenging task in today’s market.
According to the SEC chairman, the number of companies going public has declined by 50% over the last three decades. He mentioned that the process of going public has become increasingly cumbersome concerning regulatory compliance and reporting, discouraging many firms from pursuing public status.
The prevalence of tech companies among the top public corporations raises risks. Consequently, Atkins supports efforts to streamline processes and enhance access for ordinary investors to private funds.
Overall, Atkins’s appearance on Bartiromo’s “Mornings with Maria” indicated the SEC chair’s intent to empower U.S. crypto firms to self-regulate while providing retail investors with a broader range of investment opportunities.