SEC Chairperson Reflects on Crypto Regulation: From "Ostrich Policy" to Proactive Adaptation, Will Integrate FinHub Functions

The official website of the Securities Exchange Commission (SEC) released the speech of Chairperson Paul Atkins at the SEC Speaks conference. Atkins said that the SEC had previously taken a negative attitude on cryptocurrency regulation, first adopting an "ostrich policy", and then shifting to law enforcement and then accountability, without building trust. Atkins believes that regulators should actively interact with the market and adjust rules to new technologies. Although the SEC has expressed willingness to communicate with potential registrants, it has not adjusted regulatory requirements, and leadership has long prevented staff from communicating complex legal issues with market participants. Now Atkins has instructed the company finance department to interact transparently with the public.
Meanwhile, the SEC's various policy divisions are working on proposals for cryptocurrency-related rules, but staff is still "clearing the way" through staff-level statements, such as the Division of Exchanges and Markets releasing FAQs. While staff views are not the Commission's rules or regulations, they can provide useful insights to the public. Atkins also wants the Commission to allow SEC registrants to host and trade securities and non-securities under the same roof. In addition, Congressional approval has been asked to redirect funding to integrate the functions of the agency's Center for Strategic Innovation and Financial Technology (FinHub) into the rest of the agency. Because it is seen as an enforcement tool and is small and inefficient, its principles and priorities will be woven into the core of the SEC, allowing innovation to be integrated into the overall SEC culture.