In a sweeping policy shift, Securities and Exchange Commission (SEC) Chair Paul Atkins announced a plan to modernize the agency’s regulatory approach to cryptocurrency, signaling a more accommodating stance for digital asset innovation while reaffirming the SEC’s oversight responsibilities.  Speaking at a roundtable hosted by the SEC’s crypto task force, Atkins made clear that one of the top priorities of his tenure is to develop a “rational regulatory framework” for crypto asset markets—one that establishes consistent rules for the issuance, custody, and trading of digital assets. His announcement marks the clearest indication yet that the agency is willing to work with the crypto industry to formalize its place within the U.S. financial system.

Atkins’ remarks reflect a stark departure from the SEC’s previous enforcement-heavy approach to crypto. Under his leadership, the SEC aims to replace what he described as a “patchwork” of informal staff guidance with formal, enduring rules that the industry can rely on.

For years, crypto entrepreneurs have operated in legal gray areas, uncertain of how U.S. securities laws apply to their tokens and trading platforms. Atkins’ vision is to eliminate that uncertainty by clarifying what qualifies as a security, what exemptions may apply, and how industry participants can register with the SEC if required.

For example, he said the agency will provide clearer exemptions for tokens that are not securities and lay out “sensible” guidelines for those that are—particularly those that may fall under the definition of an investment contract. This could offer much-needed clarity for token projects looking to raise funds legally within the U.S.

In addition to redefining how digital assets can be issued, Atkins emphasized the need for expanded options around custody and trading.  On the custody front, Atkins said he supports expanding the list of entities that can qualify as “qualified custodians” under SEC rules. He also suggested the agency may grant exemptions to current custody requirements to better reflect common practices in the crypto industry. This includes the possibility of allowing investment advisors and funds to engage in self-custody under certain safeguards.

When it comes to trading, Atkins proposed a major shift: enabling broker-dealers operating alternative trading systems (ATS) to facilitate trading in both securities and non-securities, such as Bitcoin and Ether. This is a notable departure from current restrictions that confine many platforms to one asset class or the other, potentially allowing for more comprehensive crypto trading under regulated frameworks.

As the SEC prepares to translate these broad commitments into concrete regulations, all eyes will be on the upcoming round of public consultations and proposed rule changes expected later this year. If successful, Atkins’ plan could usher in a new regulatory era for the U.S. crypto market.