Former SEC Commissioner Paul Atkins Advocates for Pro-Crypto Regulatory Framework
Paul Atkins, a former commissioner of the U.S. Securities and Exchange Commission (SEC) and a nominee for Chair of the agency, has voiced strong support for a pro-cryptocurrency regulatory framework during his Senate confirmation hearing. Atkins' stance reflects a growing shift among U.S. policymakers toward creating clearer rules for the cryptocurrency industry, which has long faced uncertainty and enforcement actions from regulators.
Proposed Changes to Crypto Regulation:
- Clarity on Token Classification:
- Atkins called for clearer guidelines on whether cryptocurrencies should be treated as securities or commodities.
- He suggested that most cryptocurrencies should not be classified as securities unless they explicitly represent ownership in a company or provide a claim on profits.
- Improved Oversight for Stablecoins:
- Atkins proposed a separate regulatory framework for stablecoins, treating them more like payment systems rather than securities.
- He supported collaboration between the SEC, Commodity Futures Trading Commission (CFTC), and the Federal Reserve to oversee stablecoin markets.
- Safe Harbor for Crypto Projects:
- Atkins advocated for a "safe harbor" policy that would allow new crypto projects to operate without facing immediate enforcement action from regulators.
- This would give developers time to establish their networks and demonstrate compliance with securities laws.
- Encouraging Institutional Involvement:
- Atkins highlighted the importance of making it easier for traditional financial institutions to engage with crypto markets.
- He supported the approval of more cryptocurrency-based exchange-traded funds (ETFs) and other regulated financial products.
