US Securities and Exchange Commission (SEC) Chair Paul Atkins, recently unveiled a new initiative called “Project Crypto,” aimed at transforming the country into the “crypto capital of the world,” in line with President Donald Trump’s promises to the industry.
This announcement, made during his address on Thursday, marks a notable departure from the aggressive enforcement policies of his predecessor, Gary Gensler, who had been criticized for his tough stance on the digital asset industry.
SEC Aims To Revitalize US Crypto Market
Atkins’ speech follows the release of a comprehensive 166-page report from the White House on Wednesday that outlines its approach to regulating the cryptocurrency sector.
With just over three months in office, Atkins has made it clear that he intends to foster a more supportive regulatory environment for digital assets, contrasting sharply with Gensler’s approach, which many in the industry viewed as overly punitive.
During his address, Atkins outlined several priorities for the SEC, including the development of “clear and simple rules of the road” for various crypto activities, such as custody and trading. He also proposed allowing exchanges to evolve into “super-apps,” which would enable them to provide a wider array of services to users.
“When our regulatory posture is calibrated to meet innovation with thoughtfulness rather than fear, America’s leadership position has only grown stronger,” Atkins stated, emphasizing a more balanced approach to regulation.
Atkins also highlighted the SEC’s goals of bringing crypto activities back to the US, modernizing custody requirements for digital asset holders, and encouraging experimentation with innovative technologies, such as the tokenization of equities.
Atkins Begins To Roll Back Gensler’s Actions
Under Gensler, the SEC aggressively pursued enforcement actions against leading crypto firms like Binance, Coinbase and Gemini, arguing that they were operating outside established securities laws and posed risks to consumers.
This hardline approach followed high-profile failures in the digital asset space. For example, the collapse of the crypto exchange FTX, once run by the now-convicted Sam Bankman-Fried, heightened scrutiny of the industry.
In response to Gensler’s policies, the crypto sector mobilized significant resources to support pro-blockchain candidates in the elections, including Donald Trump, who has promised to appoint officials friendly to digital assets.
Atkins, a former SEC commissioner and advisor to digital asset projects, is seen as a key figure in this shift toward a more accommodating regulatory environment.
Before even taking office, Atkins had already begun to reverse some of Gensler’s actions, a move led by Commissioner Hester Peirce, known as “crypto mom” for her supportive stance on the industry.
This included retracting several lawsuits against companies like Coinbase, Uniswap, Robinhood and more, initiating new rulemaking efforts within the regulatory agency.
Despite these positive developments, critics remain cautious. Some Gensler supporters warn that a relaxed regulatory framework could lead to a resurgence of fraud and market collapses akin to those seen during earlier boom-and-bust cycles.
Dennis Kelleher, CEO of the consumer advocacy group Better Markets, expressed concern that under Atkins, the interests of large financial firms may be prioritized over investor protections.
Featured image from DALL-E, chart from TradingView.com
