SEC Vows More Crypto Regulation to Keep Markets Onshore

SEC Chair Paul Atkins has reaffirmed the agency's commitment to regulating the cryptocurrency industry, stating that more rule changes are on the horizon to keep markets onshore.

In a recent social media statement, Atkins highlighted the need for modernized custody rules for crypto assets, which would replace those put in place in 1940. He emphasized that these new rules would acknowledge the potential of blockchain technology to modernize the financial system.

Atkins' comments come as part of a broader regulatory approach by the SEC, which has been underway since 2025. The agency has already introduced two landmark initiatives for the crypto industry: Regulation Crypto Assets, which creates a tailored offering regime for crypto assets as investment contracts, and the Innovation Exemption, which establishes a 5-year sandbox for trading national stocks in decentralized exchanges and liquidity providers.

However, not everyone is in favor of the SEC's approach. Former SEC Chief at the Office of Internet Enforcement, John Reed Stark, has argued that the agency's push for regulation exceeds its authority and usurps Congress's authority.

Despite this criticism, Atkins remains committed to continuing the SEC's work in the crypto field, stating that 'more regulatory proposals are on the horizon' and expressing his goal of cementing the United States as the 'crypto capital of the world.'