A tectonic shift is looming in U.S. crypto regulation. U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has unveiled an ambitious project, Regulation Crypto Assets, which he envisions as a way to bring back crypto companies that have massively fled the jurisdiction over the past four years. This is not just an update of rules—it is an attempt to rewrite the very philosophy of how the state interacts with digital assets.
Abandoning "Enforcement-First" Regulation
Atkins states outright: the previous approach, based on harsh enforcement measures, has failed. Years of lawsuits and threats instead of clear guidance have driven startups offshore, making "honest fundraising" for crypto projects impossible. In his view, the previous administration tried to squeeze tokens into securities laws written in the 1930s, completely ignoring the specific nature of blockchain assets.
"In practice, this approach only hurt capital inflows into this asset class—through enforcement-driven regulation and insincere calls to 'come and register,'" the SEC chief emphasizes.
Capital Knows No Borders
Atkins's key argument is pragmatism, not patriotism. In an interview with Fox Business, he reminds that investors move funds between countries in a couple of clicks. If the U.S. creates unbearable conditions, money simply leaves. The regulator's task is to make American laws an attractive alternative for global capital.
"We cannot fool ourselves: American investors in the internet age can send money anywhere. We need to create conditions so they can do so in the U.S. under American laws," notes Paul Atkins.
Legislative Foundation
Atkins is not limiting himself to agency-level initiatives. He is actively lobbying for the CLARITY Act, which would codify at the federal level the division of powers between the SEC and the Commodity Futures Trading Commission (CFTC). In his conviction, only a law—not the regulator's internal rules—will create durable standards that will not be overturned with the arrival of a new administration. Both processes—Congress and the SEC's independent rulemaking—are seen by him as parts of a single movement to bring capital back to the country.
My take: Atkins's initiative is a long-awaited signal for the market, but the path will be thorny. For now, the probability of the CLARITY Act passing in 2026, according to Polymarket data, is declining, which points to the complexity of the legislative process. Nevertheless, the very fact of the SEC's rhetoric shifting from punitive to constructive is already significant positive news for institutional investors awaiting clarity.