SEC Chairman Paul Atkins has acknowledged that the United States is “10 years behind” in regulating cryptocurrencies and is committed to accelerating crypto progress.
According to him, “The crypto aspect is our job” marking it as a priority for the regulatory body.
During the DC Fintech Week event at Amazon headquarters on Wednesday, Atkins stated that the SEC intends to build a robust framework to bring back industry participants who may have left the country, allowing innovation to flourish.
“I like to say that we are now the values and innovation commission.” he added.
Source: Youtube
When asked how regulators support innovation, Atkins responded that the digital asset industry’s previous approach had been somewhat disingenuous, but confirmed that the situation had changed.
The SEC is now working full time on cryptocurrency regulation and will introduce an “innovation exemption” to allow experimentation with new ideas.
“We at the SEC, with respect to our statutes, have pretty broad authority to make exemptions, so I think we can be very progressive on that to make room for new ideas.” said.
“And if the ideas are not good, the free market reaction will tell.”
He noted that the cryptocurrency industry benefits from having pro-crypto executives at the SEC, like “crypto mama,” whose understanding of the space helps the agency embrace innovation.
He emphasized that cryptocurrencies are the agency’s top priority to close the 10-year gap created by previous regulatory approaches.
When asked about tokenization and real-world assets, Atkins responded that tokenization is essential because blockchain technology is the most interesting aspect of cryptocurrencies.
“Tokenization is not necessarily the numerous cryptocurrencies, as many would come and go, but I think putting things on chain presents huge potential benefits for the financial industry and elsewhere.”
He added that blockchain’s transparency makes it incredibly powerful in solving compliance issues.
Atkins’ comments have renewed attention on how existing securities laws, particularly the Securities Act of 1933 and the Securities Exchange Act of 1934, apply to digital assets.
Under the 1933 Act, any asset classified as a “security” must register with the SEC unless an exemption applies.
The 1934 Act extends supervision to secondary markets, regulating stockbrokers, exchanges, and market manipulation.