SEC Chairman Paul Atkins Breaks His Silence：What His First Major Speech Tells Us About the Future of Crypto Regulation in the U.S.
On May 12, 2025, Paul Atkins — recently appointed Chairman of the U.S. Securities and Exchange Commission (SEC) — delivered his first major policy address at a roundtable in Washington D.C. focused on digital assets. His speech marked a pivotal moment: not just a personal debut, but a clear policy inflection point.
For the past several years, the crypto industry in the U.S. has been under siege by regulation-through-enforcement. But with Atkins at the helm, the SEC is now signaling a shift — from crackdowns and lawsuits to structured rulemaking and open dialogue.
Atkins laid out three regulatory pillars that will shape the next chapter of U.S. crypto policy: Token Issuance, Custody, and Trading Infrastructure. Let’s unpack what he said, why it matters, and what it might mean for the future of crypto in America.
Token Issuance: Safe Harbors and Tailored Rules Are Back on the Table
The process of launching a crypto project in the U.S. has long been fraught with regulatory ambiguity. Most projects shy away from public token sales on U.S. soil, afraid of being labeled as unregistered securities under the 1933 Securities Act. Existing registration frameworks like the S-1 were designed for corporate IPOs, not decentralized protocols.
Atkins acknowledged this disconnect. In his speech, he called out the incompatibility of current disclosure requirements with the realities of blockchain innovation. Developers aren’t avoiding compliance out of malice — they simply don’t see a workable path.
So what’s the solution?
A new, fit-for-purpose token registration framework. The SEC will explore designing a streamlined form specifically for crypto asset issuers. Instead of executive compensation disclosures, the form might prioritize smart contract audits, tokenomics, and decentralized governance models.
Revival of the Safe Harbor proposal. Originally floated by Commissioner Hester Peirce, the safe harbor idea would give projects a three-year runway to decentralize without fear of enforcement — so long as they meet basic transparency standards. Atkins called it “an idea worth revisiting.”
Clearer definitions for “non-security” tokens. Not all tokens are securities. Atkins wants the SEC to draw firmer lines around what counts as a utility token or commodity, reducing the gray area that forces projects offshore.
In plain terms: the SEC may finally offer builders a roadmap instead of a courtroom. That alone could trigger a renaissance of U.S.-based token launches.
Custody Rules Are Getting Rewritten: Multi-Sig, MPC, and Self-Custody in Focus
Custody might not sound flashy, but it’s one of the most critical aspects of any financial system — crypto included. Who holds your assets? Under what rules? And what happens if something goes wrong?
After the FTX collapse, custody has taken center stage. The SEC previously responded with Staff Accounting Bulletin 121 (SAB 121), a controversial guidance that required custodians to record customer crypto assets as liabilities on their own balance sheets. The policy was widely criticized as unworkable.
Atkins isn’t mincing words: SAB 121 will be rolled back. He said plainly that such accounting rules have “discouraged responsible custody solutions” and need to be replaced with smarter policy.
Here’s what his vision looks like:
New definitions of Qualified Custodians. Under current rules, very few firms legally qualify to hold crypto on behalf of clients. Atkins wants to expand that circle to include crypto-native custodians, licensed exchanges, and possibly even decentralized protocols — so long as they meet security and transparency benchmarks.
Support for self-custody exemptions. Atkins is sympathetic to crypto’s decentralized roots. He believes that under the right circumstances, investment advisors and funds should be allowed to self-custody crypto assets. This would be a major step toward legitimizing cold wallets and non-custodial structures.
Tech-inclusive custody standards. Modern custody doesn’t always mean handing over private keys. Atkins mentioned that secure architectures like Multi-Signature Wallets, MPC (Multi-Party Computation), and threshold cryptography should be recognized under law.
In short: custody regulation is moving from one-size-fits-all to a more modular, tech-driven framework. That’s good news for institutions, DeFi builders, and users alike.
Trading Platforms: From “Unregistered Exchange” to Regulated Innovation Hubs
Trading is the lifeblood of any crypto ecosystem. Yet in the U.S., most crypto exchanges have operated under constant fear of being labeled an “unregistered securities exchange.” With little clarity, platforms have resorted to offshoring, listing only non-U.S. tokens, or excluding Americans altogether.
Atkins wants to change that. He emphasized that crypto exchanges deserve a seat at the regulatory table, not a subpoena.
Here’s what’s on his agenda:
Reforming the ATS framework. Alternative Trading Systems (ATS) have been a common workaround in traditional markets, but the existing framework is ill-suited for crypto. Atkins said the SEC is working on modernizing ATS rules to accommodate tokenized assets, potentially allowing platforms to register under a lighter, more flexible regime.
Opening national exchanges to crypto. Today, major U.S. stock exchanges like Nasdaq and NYSE don’t list tokens (aside from ETFs). Atkins believes it’s time to explore enabling these exchanges to list compliant digital assets. That could bring enormous liquidity and credibility to the space.
Defining the Crypto Broker-Dealer. The SEC wants to create a new class of broker-dealers specifically designed for crypto market intermediaries — whether they’re DeFi aggregators, centralized exchanges, or hybrid models.
Anti-manipulation tools tailored for DeFi. Regulation won’t mean deregulation. Atkins said the SEC is also working on frameworks for preventing wash trading, front-running, and insider abuse — possibly through on-chain analytics and transparency rules baked into smart contracts.
Bottom line: the SEC doesn’t want to kill crypto trading — it wants to domesticate it. And in doing so, it may pave the way for true institutional adoption.
The Big Picture: From Threat to Opportunity
Paul Atkins’s speech wasn’t just a change in tone — it was a change in direction. After years of adversarial posture, the SEC now seems ready to partner with the industry, not just police it.
Of course, nothing’s been finalized yet. Rules still need to be proposed, debated, and enacted. But make no mistake: this is the biggest regulatory pivot in U.S. crypto history since the early ICO boom.
If you’re a developer, this could be your chance to build without looking over your shoulder.
If you’re an exchange, it might be time to consider going legit on U.S. soil.
If you’re an investor, you might finally get a safer, clearer playing field.
Crypto in the U.S. isn’t out of the woods yet — but for the first time in years, it looks like there’s a real path forward.
