TL;DR
- SEC Chair Paul Atkins advocates a more open regulatory approach toward crypto.
- He asserts the SEC already has the legal authority to support new financial models.
- Atkins criticizes outdated rules for limiting capital access for smaller companies.
Paul Atkins, Chair of the U.S. Securities and Exchange Commission (SEC), is adopting a more open stance toward the crypto sector and argues that the agency already holds the legal authority needed to support emerging financial models without waiting for new laws from Congress. In a recent interview with CNBC’s Squawk Box, he said his team is preparing an innovation-focused exemption aimed at giving room to projects that operate in areas where the SEC has maintained resistance for years.
Atkins explains that the United States has moved slowly in recognizing the value of technologies linked to digital assets. He notes that the lack of institutional support has kept the country behind other markets that advance faster in crypto-related development. He intends to change that trajectory through a regulatory approach that offers space for companies building new financial tools centered on blockchain and tokenized assets.
The SEC Chair also points toward a deeper issue
A rulebook that no longer aligns with modern market needs. In his view, outdated requirements limit the ability of companies to raise capital efficiently, especially in the context of initial public offerings (IPOs) and small or mid-sized businesses that face higher barriers. Atkins stresses that the SEC must update and modernize its regulations to keep pace with the evolution of financing models and to ensure smoother access to public markets.
Another concern highlighted by Atkins is the sharp decline in the number of publicly listed companies. He notes that U.S. markets now host roughly half the number of public firms seen three decades ago, a trend he attributes partly to excessive regulatory constraints. The reduction limits investment opportunities for retail participants and pushes more activity into private markets, where transparency is often weaker.
Atkins believes an innovation-oriented exemption could help rebalance the market. By offering a more flexible regulatory space, he argues, the SEC can attract new companies to public markets, strengthen capital formation, and support financial models that previously operated at the edges of traditional structures.
