SEC Chair Paul Atkins Criticizes Gensler’s Crypto Crackdown

Newly appointed SEC Chair Paul Atkins, the new SEC chair, calls out the agency’s past failures under Gary Gensler’s tenure. Atkins slammed Gensler’s way of handling crypto as a disaster that hurt growth and let fraud sneak in. 

But now, Atkins promises to fix it all by giving the crypto world the clear rules it needs. 

Could this be the start of a crypto boom in America?

No More Surprise Lawsuits

For years, the SEC’s primary approach to crypto has been through surprise lawsuits and stringent actions. This was especially true under the previous SEC chair, Gary Gensler. His tenure was marked by lawsuits and broad regulations that often confused or worried the crypto community. 

But Atkins says those days are over. 

In a Senate hearing on June 3, he said this old way of going after crypto companies without clear rules, what’s known as “regulation-by-enforcement,” hurt innovation and allows more fraud to sneak in.

Instead, Atkins believes the SEC should go back to its roots, making fair rules and only stepping in when there’s real wrongdoing. That’s a big relief for anyone holding crypto or building something new in the space.

Dropping Old Lawsuits, Focusing on Real Rules

Since Gensler left, the SEC has already dropped some big lawsuits, first under interim chair Mark Uyeda and now under Atkins. They’re also writing new guidance to help everyone in crypto. For example, certain staking activities are now clearly not considered securities.

Meet the New Crypto Task Force

Atkins also praised the SEC’s new Crypto Task Force, which is being led by Commissioner Hester Peirce. This group is focused on creating fair and clear guidelines for the crypto industry. Atkins said Peirce’s passion and dedication make her the right person to lead this important work.

The Crypto Task Force is different. It brings people together to create rules that work for everyone.”