CNBC Crypto World• Apr 10, 2025• 12:05Interview

Senate confirms President Trump’s pro-crypto SEC chair pick Paul Atkins: CNBC Crypto World

From CNBC Crypto World

Kathryn Dowling•General Counsel and Chief Compliance Officer, Bitwise

Executive Summary

Senate confirmed Paul Atkins as the new SEC Chair, signaling a significant shift from the adversarial "regulation by enforcement" era under Gary Gensler to a more collaborative, pro-crypto regulatory approach.
Reflecting a change in strategy, the SEC is dropping or resolving investigations and lawsuits against major crypto firms like Ripple and Crypto.com, prioritizing clear rulemaking over litigation.
Experts believe the new regulatory environment will encourage crypto businesses to operate onshore in the U.S., leading to safer, more transparent products for investors and reversing the trend of innovation moving offshore.
There is significant legislative momentum in Congress, with two stablecoin bills (the Stable Act and the Genius Act) reportedly having enough votes to pass, marking a major step toward a comprehensive U.S.
crypto framework.

12 quotes

Concerns Raised

The legacy of legal ambiguity from the 'regulation by enforcement' era still needs to be resolved through clear rules.
The high cost and time wasted on past litigation that yielded little clarity for the industry.
A counter-argument that a less aggressive SEC could inadvertently allow for more fraudulent activity, though this view was refuted by the guest.

Opportunities Identified

Establishing a clear and stable regulatory framework for digital assets in the U.S.
Bringing crypto innovation and businesses back onshore, enhancing investor protection and market transparency.
Passing foundational stablecoin legislation to create market certainty and a basis for further regulation.

Key Themes

A New Era at the SEC

The confirmation of Paul Atkins as SEC Chair marks a pivotal change in U.S. crypto oversight. He is expected to replace Gary Gensler's "regulation by enforcement" strategy with a collaborative approach aimed at establishing a clear regulatory framework through dialogue with the industry.

This leadership change reduces the legal and existential uncertainty that has plagued the U.S. crypto industry, potentially unlocking domestic investment, innovation, and institutional adoption.

The Retreat from Regulation by Enforcement

The SEC has recently dropped, resolved, or paused numerous high-profile cases against crypto companies like Ripple and Crypto.com. This trend is seen as a direct result of the agency's changing leadership and a recognition that litigation is an inefficient and costly way to create policy.

This de-escalation lowers the immediate legal risk for many crypto companies and signals that the agency will now favor rulemaking to resolve long-standing questions about asset classification and jurisdiction.

Onshoring Innovation for Investor Protection

The previous administration's hostile stance was criticized for pushing crypto businesses offshore to less-regulated jurisdictions. The new approach aims to create a clear, workable framework that encourages companies to operate within the U.S., which is argued to provide greater transparency and safety for investors.

Bringing crypto businesses back onshore could bolster the U.S. economy, improve tax revenue, and give U.S. investors access to regulated products, mitigating risks like the FTX collapse which involved an offshore entity.

Legislative Momentum for a Digital Asset Framework

Beyond the SEC, there is significant movement in the U.S. Congress to pass foundational crypto legislation. Two stablecoin bills, the Stable Act and the Genius Act, reportedly have enough votes to pass, indicating bipartisan support for creating clear rules for this sector.

Congressional action provides a more permanent and comprehensive solution than agency-level rulemaking. Passing these bills would establish the first major piece of a federal crypto regulatory structure in the U.S., providing much-needed clarity.

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Topics

SEC Paul Atkins Gary Gensler Crypto Regulation Regulation by Enforcement Stablecoin Legislation Stable Act Genius Act Ripple Crypto.com OpenSea NFTs Hester Peirce Market Structure U.S. Congress

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