Atkins likened the shift to blockchain-based securities to the music industry’s digital transformation, arguing that “on-chain” assets could revolutionize capital markets just as MP3s reshaped audio distribution.
According to Atkins:
“It is a new day at the SEC.”
Atkins laid out an ambitious reform agenda focused on enabling compliant crypto asset issuance, expanding legal custody options, and modernizing trading frameworks.
He noted that only a handful of projects have successfully registered offerings through traditional SEC pathways, pointing to outdated disclosure forms and legal uncertainty as major barriers.
To address this, the regulator will consider exemptions, safe harbors, and disclosure guidance more suitable for digital-native assets. He emphasized that interim staff guidance remains temporary, and full Commission rulemaking is needed to establish enduring standards.
On custody, Atkins endorsed the rollback of Staff Accounting Bulletin No. 121, which had imposed restrictive treatment of crypto holdings. He called for broader clarity on what qualifies as a “qualified custodian” and said custody rules should evolve to reflect self-custody solutions and emerging best practices in the industry.
For trading, Atkins voiced support for allowing broker-dealers to offer integrated services, including crypto and non-crypto assets, under unified platforms. He also raised the possibility of conditional exemptive relief to allow novel products that may not yet fit within existing rules.
Throughout the address, Atkins highlighted the need for rules that protect investors while supporting innovation. He emphasized that fraud enforcement remains a priority, but the SEC’s approach will return to its “original intent” to police violations of established obligations rather than making policy through enforcement.
The SEC is expected to proceed with additional rulemaking, staff guidance, and interagency coordination in the coming months as it seeks to establish the US as a leader in tokenized financial infrastructure.
