1. Introduction
On April 22, 2025, Paul S. Atkins was sworn in as the 34th Chairman of the U.S. Securities and Exchange Commission (SEC), sending an unprecedented policy-friendly signal to the crypto industry. In his inaugural speech, he made it clear that the "top priority" during his future term is to establish a clear and reasonable regulatory framework for digital assets and help the United States become the world's most innovative and attractive crypto asset development center.
Unlike the "high-pressure law enforcement" approach under the leadership of former Chairman Gary Gensler, Atkins is regarded as a "crypto dad" who advocates "common sense regulation" and "support for innovation". So far, Atkins has expressed clear policy attitudes on crypto assets, DeFi, stablecoins, PoW and PoS tokens in many public occasions. The SEC has also successively issued relevant clarification statements to proactively clarify the scope of application of securities laws, aiming to enhance industry confidence through transparency of rules. At the same time, a series of high-profile law enforcement cases have been withdrawn or settled, sending an important signal of flexible supervision, indicating that the SEC is transforming from "law enforcement-led" to "rule-first".
After Atkins took office, major investment institutions have raised their expectations for allocation to the US compliance market, and the DeFi protocol and token market have rekindled growth momentum. This report will sort out Atkins' important policy signals so far, deeply analyze his regulatory thinking and policy trends, and look forward to the possible systemic impact on the industry in the future.
II. Analysis of the similarities and differences in SEC policies during the two chairmen’s terms
In stark contrast to the high-handedness of his predecessor, Atkins is transforming the SEC's posture from law enforcer to guide and rule maker.
Differences in regulatory thinking: During Gary Gensler's tenure as the SEC, he adopted a conservative approach of strong law enforcement and "regulation first, innovation later" for crypto assets. During Gensler's tenure, the SEC expanded the crypto enforcement department and launched a large-scale lawsuit against exchanges and issuance projects, which was regarded by the industry as "repressive regulation." In contrast, Atkins's philosophy is a "new paradigm," which focuses on formulating clear policies through the Crypto Task Force, emphasizing the need to end the industry's "stagnation and confusion" for many years. During Gensler's time, there were basically no new regulations tailored for crypto, while Atkins has issued multiple statements in less than two months since taking office to clarify the scope of application of the law and promote the drafting of new regulations. In short, the predecessor was keen on "setting an example" through individual case enforcement, while the current one is more inclined to give behavioral boundaries in advance by issuing rules.
Different enforcement methods and attitudes: Gensler focuses on high-pressure deterrence. He has used law enforcement to strengthen regulatory authority, and even if some projects are not fraudulent, they must be held accountable for "non-compliance"; Atkins is more cautious and restrained, tolerant of technical exploration without fraud, and willing to solve problems through negotiation. This can be reflected in personnel and institutional adjustments: Before Atkins took office, Acting Chairman Uyeda had begun to reduce encryption law enforcement efforts, renamed the encryption law enforcement group to the "Network and Emerging Technology" group, and deployed personnel to formulate rules. Two Republican committee members, Uyeda and "Crypto Mom" Hester Peirce, also publicly criticized Gensler's enthusiasm for litigation, advocating new regulations to replace endless legal battles.
Specific policy differences: In terms of securities identification standards, Gensler insists on using the Howey test, believing that most tokens except Bitcoin meet the definition of "investment contracts", and even implies that many tokens are unregistered securities. The Atkins camp tends to make the opposite judgment: Commissioner Peirce bluntly stated in May 2025 that "most crypto assets on the market are not securities." Atkins himself also supported a series of statements, essentially delineating PoW tokens, ordinary stablecoins, decentralized issued tokens, etc. from the scope of securities regulation.
Differences in enforcement cases : During Gensler's tenure, the SEC sued crypto projects such as Ripple, Coinbase, Binance, and Kraken, attempting to set legal precedents through court rulings. After Atkins took office, the SEC quickly withdrew or shelved these lawsuits on the grounds of "non-compliance" without any fraud, including the withdrawal of the Coinbase case, the settlement of the Ripple case, and the suspension of the Binance case, which was equivalent to a 180-degree policy turn.
3. Atkins’ regulatory attitude towards the crypto industry
Atkins stressed that the crypto-asset sector needs a "reasonable market regulatory framework" to provide guidance for the issuance, custody and trading of crypto-assets through clear rules, rather than taking enforcement measures at will. He pointed out that securities are migrating from traditional off-chain databases to blockchain chains, and the SEC must keep up with the pace of innovation and evaluate whether current regulations need to be adjusted to accommodate on-chain securities and other crypto-assets. He said that during his tenure, the SEC will "no longer rely on controversial enforcement actions" but will use existing rule-making powers, interpretation powers and exemptions to set precise standards for market participants. Atkins' statement announced a major shift in the SEC's regulatory approach: from previous regulatory ambiguity and high-pressure enforcement to transparent rule guidance and a roadmap for legal compliance.
1. Crypto Asset ETFs
The SEC has approved the first batch of Bitcoin spot ETFs and Ethereum spot ETFs in 2024, and there have been dozens of applications for other crypto asset ETFs since 2025. Data shows that at least 31 "Altcoin" ETFs have applied in the first half of 2025, including XRP, BNB, SOL, DOGE and even Trump's personal token TRUMP, reflecting the market's optimistic expectations for the new regulatory environment. Analysts believe that the SEC is expected to approve about ten of these ETFs, ushering in the "Summer of Alternative Coins" market with compliant products listed.
2. Decentralized Finance
Atkins said of DeFi that "economic freedom, private property rights and innovation, these core American values, are the genes that the DeFi movement is born with". At the "DeFi and American Spirit" roundtable on June 9, 2025, he emphasized that the hundreds of years of old regulations should not stifle the transformative potential of blockchain technology, and "there is no need to automatically fear the future". He particularly pointed out that unlike the recent failed and turbulent centralized platforms, many on-chain protocols still operate stably according to the open source code design during the crisis, showing strong resilience. Atkins believes that DeFi needs a regulatory framework that is different from that of traditional intermediaries, and cannot simply apply the regulations of centralized finance. He proposed exploring a conditional "innovation exemption" mechanism to allow qualified registered or unregistered entities to quickly launch on-chain products and services, providing DeFi projects with a legal trial space before the formal rules are introduced, which is seen as a relaxation of regulation for the entire industry.
3. Trading platform and token trading
Regarding crypto exchage and securities trading platforms, Atkins advocated breaking the unreasonable bans of the past and allowing compliant institutions to provide more abundant trading products according to market demand. For example, he said that some brokers hope to create "super applications" that integrate securities, non-securities and other services, but the current law does not prohibit registered brokers with alternative trading systems (ATS) from providing non-securities transactions, including securities and non-securities pairing transactions. Therefore, he has instructed the SEC team to modernize the ATS regulatory system to better accommodate crypto asset transactions and evaluate whether further guidance or rules are needed to support national securities exchanges to list and trade crypto assets. This means that traditional securities exchanges are expected to list and trade certain digital assets (such as Bitcoin ETFs, tokenized securities, etc.) under the premise of compliance in the future, ending the past situation where "regular markets are not allowed to touch crypto assets." At the same time, while the SEC is building a comprehensive regulatory framework, market participants should not be forced to go overseas for innovation. He is considering providing conditional exemptions for new products/services that are difficult to implement due to current rules, so that innovative attempts can remain in the United States.
4. Miners, nodes and staking services
In terms of crypto infrastructure, Atkins also released a signal of easing. He believed that "voluntary participation in PoW or PoS networks as miners, validators, or providing staking services is not within the scope of federal securities law regulation." This statement is regarded by the industry as a "get out of jail free card" for the mining and staking fields: protecting everyone from Bitcoin miners to Ethereum validators to various staking service providers means that simply participating in network consensus and obtaining rewards does not constitute securities issuance. This is in sharp contrast to the Gensler era. The SEC under Gensler has repeatedly pointed the finger at staking, and even named the liquidity staking tokens stETH and rETH of Lido, Rocket Pool, etc. as unregistered securities, thus taking legal action against these projects. Atkins made it clear that the new SEC would no longer "trouble" these projects that lacked compliance efforts but did not commit fraud.
5. Self-custodial wallets and infrastructure
Atkins publicly supports giving market participants more flexibility to custody digital assets themselves, "especially when intermediaries impose unnecessary costs or restrict activities such as on-chain staking." In other words, investors should have the choice to store crypto assets in their own wallets instead of being forced to hand them over to third-party custody. Atkins criticized the previous administration's approach for hitting innovation in on-chain technologies such as self-custody. As a result, the SEC has revoked Staff Accounting Bulletin No. 121 (SAB-121), a guidance from the Gensler era that required banks and public companies to include custody of customer crypto assets on their balance sheets, which was considered to have set a huge obstacle to providing custody services. Atkins advocates for clearly defining the standards for "qualified custodians" under the Advisers Act and the Investment Company Act, and providing reasonable exemptions for common operations in the crypto market. For example, investment advisors and funds are allowed to self-custody customer assets under certain conditions, because some institutional self-custody solutions are more technologically advanced and can provide better security than custodians. In addition, he proposed to abolish the current "special purpose broker" framework and replace it with a more reasonable system.
4. SEC Statement on Crypto Assets Not Considered Securities
Source: https://www.sec.gov/newsroom/speeches-statements/staff-statement-meme-coins
After Atkins took office as SEC Chairman, the SEC issued a number of official statements, staff statements and guidance documents to clarify the regulatory boundaries of digital assets, pointing out that the following types of crypto assets are generally not considered securities:
Memecoin : On February 27, 2025, the SEC's Division of Corporate Finance issued a staff statement on memecoins. This is the first specific explanation of how federal securities laws apply to specific categories of cryptocurrencies since Trump issued an executive order on digital assets and established a cryptocurrency task force. The statement pointed out that most meme-based crypto tokens are not securities, and their issuance and trading are not subject to federal securities laws. The statement describes "memecoins" as tokens created based on Internet memes, popular culture or trends. The issuer attracts the community to follow suit through social media and other means. Such tokens are usually mainly used for entertainment, social or cultural purposes, lack practical functions or usage scenarios, and their value is highly dependent on market sentiment and speculative demand. The SEC emphasized that typical memecoins do not generate holding income, nor do they give holders the right to claim a company's income, profits or assets, which is fundamentally different from traditional securities such as stocks and bonds. At the same time, the SEC also reminded that the economic substance needs to be assessed based on the specific circumstances; if a token is named "meme" but has investment income attributes or the issuer invests funds to operate to generate profits, it may be considered a security.
PoW tokens : On March 20, 2025, the SEC's Corporate Finance Division issued a statement on certain proof-of-work mining activities, clearly stating that cryptographic tokens generated through proof-of-work mining are not considered securities, and related mining activities do not constitute securities issuance. This statement applies to the behavior of obtaining block rewards through PoW consensus on public, permissionless blockchains, including independent mining by miners and joint mining by mining pools. "Covered crypto assets" are limited to native tokens that are procedurally linked to the operation of blockchain networks, such as tokens used to participate in consensus mechanisms or as mining rewards. Miners and mining pool operators participating in such mining do not need to register with the SEC.
Stablecoins : On April 4, 2025, the SEC's Corporate Finance Division issued a statement on stablecoins, determining that legal currency-pegged stablecoins that meet certain conditions are not securities. The statement defines "compliant stablecoins" as digital assets that meet the following conditions: (i) designed to maintain a stable value of 1:1 with the US dollar and redeemable at an equivalent value of 1:1; (ii) supported by sufficient low-risk, high-liquidity reserve assets, with a reserve market value at least equal to the total face value of the stablecoins in circulation; (iii) limited to payment and value storage, not providing holders with passive income such as interest and dividends, and not selling them as investment opportunities. For stablecoins that meet the above criteria, SEC staff analyzed and believed that their issuance and circulation did not involve the offer or sale of securities and did not require securities registration. It should be noted that the above exemption only applies to stablecoins that are pegged to the US dollar and supported by sufficient reserves; algorithmic stablecoins, stablecoins pegged to non-US dollar assets, or stablecoins that promise fixed returns to holders are not included in the list of "compliant stablecoins" and may not enjoy the above securities exemption treatment.
PoS pledged tokens : On May 29, 2025, the SEC's Corporate Finance Division issued a statement stating that protocol pledge activities in proof-of-stake (PoS) networks do not constitute securities issuance and sales and do not need to be registered under federal securities laws. The statement defines "crypto assets covered by protocol pledges", namely those blockchain native tokens that are closely related to the operation and security of public permissionless networks, used to participate in or reward consensus mechanisms, and do not themselves give holders any passive income rights. The staff believes that when the holder of such tokens pledges such tokens to run nodes in accordance with the network rules, or entrusts the tokens to third-party nodes to participate in verification, or pledges them on behalf of the custodian platform, the pledger always retains ownership and control of the tokens, and the new token rewards obtained are essentially a return on the resources provided for their participation in maintaining network security, rather than investment income from the management efforts of others. Therefore, whether it is self-pledge, entrusted pledge under self-custody, or pledged through custody methods such as exchanges, as long as the pledged tokens meet the above characteristics, the pledge process and the proceeds do not constitute securities investment contracts defined by the Howey test, and the relevant transactions do not involve securities.
DeFi tokens : The SEC has not yet issued a special statement on "DeFi tokens" to exclude them from the definition of securities as a whole. At the SEC's special roundtable on crypto assets hosted by Atkins on June 9, 2025, he stated that he would instruct SEC staff to study providing a conditional "innovation exemption" regulatory framework for DeFi projects, allowing decentralized financial platforms that meet certain conditions to operate under less regulatory constraints. Atkins emphasized that U.S. law should protect the public's right to participate in blockchain innovation. For example, users' custody of digital assets and direct participation in on-chain agreements should not be improperly restricted, which reflects the new SEC's desire to "let the market flourish" through flexible supervision. Although these remarks are not formal regulations, it can be seen that the SEC tends to take a more relaxed policy direction for truly decentralized DeFi tokens with no preset investment returns. In the future, the SEC may clarify the legal status of such tokens through further guidance or rulemaking.
V. Outlook for potential policy measures
Combining Atkins' statement with the current US regulatory environment, we can predict several important policy initiatives that he may promote during his tenure:
1. Restart and improve the review of products such as Bitcoin ETFs: Crypto asset ETFs repeatedly encountered obstacles during the Gensler era, but the new SEC team has shown a more open attitude. With the approval of Bitcoin and Ethereum ETFs in early 2024, Atkins ushered in a wave of applications for Altcoin ETFs after taking office. In the future, the SEC is likely to accelerate the review of such products and formulate special guidelines for crypto ETFs. In addition to ETFs, other innovative financial products (such as funds based on DeFi income, investment tools supported by NFTs, etc.) are also expected to have the opportunity to be re-evaluated.
2. Clarify the identification standards for crypto-asset securities: The question of "which tokens are securities" that has long plagued the industry is expected to be clarified during Atkins' tenure. Although the Howey test remains the legal cornerstone, the SEC may issue additional guidance or rules to specifically explain the circumstances in which the test applies to digital tokens. For example, clarify what degree of decentralization means that tokens are no longer considered securities; how the functional use of tokens (payment-type, consumer-type tokens) affects the judgment of securities attributes; and whether secondary market transactions involve securities issuance, etc. In fact, since 2025, the SEC has successively characterized some categories through staff statements: "pure payment" stablecoins are not securities, "meme-type tokens" may not be subject to securities laws if there is no issuer, and "proof of work/proof of equity rewards" do not constitute securities transactions. These scattered clarifications need to be elevated to binding rules or guidelines. In short, on the core legal issue of securities identification, the new SEC tends to give answers through explicit regulations rather than law enforcement settlements to end regulatory arbitrage and gray areas.
3. Promote legislation to clarify regulatory ownership: Although the SEC has jurisdiction in the securities field, crypto assets involve attributes such as commodities and currencies. For a long time, the SEC has been in dispute with the Commodity Futures Trading Commission (CFTC) and banking regulators over the division of responsibilities. The "Clarity Act of 2025" and the "Stablecoin Innovation and Regulation Act (GENIUS Act)" currently being promoted by Congress are legislation that attempts to define regulatory boundaries and establish the legal status of stablecoins. If these laws are passed, the United States will usher in a unified regulatory framework for crypto assets, fundamentally solving the problems of regulatory overlap and gaps.
4. Other possible reform measures: In addition to the above priorities, Atkins' SEC may also introduce measures on internal governance and cross-institutional cooperation. For example, he may reorganize the SEC's internal crypto-related departments, upgrade the status of the Crypto Task Force, and establish a dedicated crypto policy office. In terms of law enforcement, Atkins is expected to continue to resolutely investigate and prosecute cases involving serious fraud or damage to investors, and even cooperate with the Department of Justice to pursue criminal liability in order to establish an authoritative image of "fighting crime" and thus quell the outside world's doubts about his "too lenient" approach. At the same time, in order to avoid the market misinterpreting his friendly gesture, Atkins may make regular policy statements or speeches in a timely manner, reiterating that the SEC is neither a "roadblock" nor a "permissive person", but performs its duties in accordance with the law and keeps pace with the times. Such communication will help stabilize market expectations and guide the industry to abide by the law and innovate.
6. Impact and Outlook: New Direction of Crypto Market
The favorable policies since Atkins took office have had an immediate boost to market sentiment. The collective surge in DeFi tokens and the 3.5% increase in Coinbase's stock price immediately after the news of the withdrawal of the lawsuit prove that the improvement in the regulatory environment is being actively priced in by investors. Some institutional analysts called the withdrawal of the Coinbase case "the removal of a huge rock that has been weighing on investors' minds for nearly two years", and trading volume and capital flows in the United States have also shown signs of recovery. This shows that favorable regulations are releasing industry vitality: plans that were shelved in the past due to concerns about compliance risks have begun to be restarted, and innovators' confidence in the US market has gradually recovered.
If the SEC formally approves a series of crypto ETFs in the next six months, it may further bring about the "ETF effect" to promote the entry of new funds. More broadly, clear supervision will help dispel the uncertainty that has shrouded the market for many years, thereby attracting traditional institutional investors to allocate digital assets. For example, Wall Street giants such as JPMorgan have begun to lay out businesses such as digital asset trading platforms, indicating that they expect the policy environment to continue to improve. On the other hand, with the relaxation of policies, the DeFi field is expected to usher in recovery and upgrading. Developers can more boldly launch new decentralized financial products, which will give rise to more diversified use cases and applications and promote the evolution of the entire Web3 ecosystem.
Although the outlook is optimistic, we must also be aware of potential challenges:
The pace and intensity of policy implementation remain uncertain: many of Atkins' ideas need to be fully implemented through formal rulemaking or congressional legislation, and may encounter resistance or delays in the process. For example, will the Democratic-controlled Senate cooperate in passing the encryption bill? Will the Democratic committee within the SEC vote in favor of certain reform proposals? These are all unknowns.
The impact of external events cannot be ignored: if the market experiences another major scandal or collapse (similar to the Luna or FTX incident in 2022), public opinion and political pressure may force the SEC to tighten its attitude again.
State-level regulation and actions by other agencies will also affect the overall situation: for example, local regulators such as the New York Attorney General have stated that they will fill the "enforcement vacuum" at the federal level. Even if the SEC relaxes enforcement, state regulators and judicial authorities may still maintain high pressure on the industry.
Conclusion: The appointment of Paul S. Atkins marks a new chapter of crypto-friendly US securities regulation. In just two months, through speeches, statements and actions, he has initially outlined a crypto regulatory roadmap that supports innovation, rules first, combats fraud, and achieves win-win cooperation. It is foreseeable that discussions around Atkins' policies will continue, but in any case, this shift in regulatory paradigm has prompted people to rethink the boundaries between crypto technology and financial regulation. It is believed that with the rational participation and game of all parties, a regulatory framework that protects investors and embraces innovation will gradually take shape and provide valuable experience for the world.
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