U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has unveiled an ambitious project called Regulation Crypto Assets, which he says is designed to bring back cryptocurrency companies that have left the jurisdiction over the past four years.
Atkins, who has held the position since the beginning of the year, has consistently championed the view that the exodus of the crypto industry from the U.S. was caused not by a lack of clear rules, but by overly harsh and aggressive enforcement. Instead of offering clear guidance, the previous administration's regulator preferred to resolve issues through litigation, which effectively stifled any attempts at honest fundraising.
Abandoning archaic norms
Atkins' key criticism of the previous approach is the attempt to fit digital assets into securities legislation drafted back in the 1930s. In his view, these rules completely fail to account for the specifics of tokens and decentralized projects. Such a formal approach not only failed to protect investors, but also directly harmed capital inflows into the new asset class.
"In practice, this approach only hurt capital inflows into this asset class — through coercive regulation and insincere calls to 'come and register,'" the SEC chief emphasized in an official statement commenting on his new initiative.
A practical approach instead of ideology
Atkins insists that his motivation is not ideological, but purely pragmatic. In the internet age, capital moves between jurisdictions with a single click. If investors and developers are subjected to unbearable conditions domestically, they will simply relocate their operations and funds abroad, which is exactly what we have witnessed in recent years. The new regulatory framework is intended to offer American market participants competitive conditions so they can operate under U.S. laws rather than seeking refuge in other countries.
The path to the CLARITY Act
At the same time, Atkins does not believe that the SEC's internal rules alone will be sufficient. He is actively lobbying for the passage of the CLARITY Act, which would legislatively codify the division of powers between the SEC and the Commodity Futures Trading Commission (CFTC). In his view, only federal law can create stable and unassailable rules that will not be overturned with the arrival of the next administration. He views both processes — his own rulemaking and the legislative initiative — as parts of a single movement to bring capital back to the country.
My analytical commentary: Atkins' initiative is undoubtedly a long-awaited shift from a policy of "regulation through litigation" to the creation of a predictable environment. However, the stakes are high: if these measures do not lead to a swift and tangible return of business and liquidity, market confidence in the new course could be undermined. The key question is whether the SEC's administrative resources can compete with the speed and flexibility of other jurisdictions that have long since created more favorable conditions for crypto innovation.