Paul Atkins, the newly appointed Chair of the U.S. Securities and Exchange Commission (SEC), has announced a comprehensive plan to reform the agency's approach to cryptocurrency regulation. Speaking at a public meeting of the SEC's crypto task force, Atkins emphasized the need for clear, official rules to support the registration, issuance, custody, and trading of digital assets, moving away from the previous administration's enforcement-driven strategy.

Atkins criticized the current regulatory environment as outdated and burdensome, stating that it "badly needs attention." He highlighted the urgency for a "rational, fit-for-purpose framework" that can foster responsible innovation while safeguarding investors.

Under Atkins' leadership, the SEC plans to create clear guidelines for crypto tokens classified as securities and consider adjustments that would allow registered broker-dealers with an Alternative Trading System (ATS) to trade non-securities like Bitcoin and Ethereum. This initiative aligns with ongoing efforts in Congress to build a broader regulatory framework for cryptocurrencies and stablecoins.

The SEC has also agreed to withdraw or pause several enforcement cases against prominent crypto firms, including Coinbase and Kraken, signaling a shift towards a more collaborative relationship with the crypto industry.

Republican Commissioner Hester Peirce is leading the task force responsible for developing the new rules and guidance, as the agency seeks to resolve longstanding conflicts between regulators and the crypto industry over the classification and treatment of digital assets.

Atkins' appointment and the SEC's new direction reflect President Donald Trump's pro-crypto stance, contrasting with the regulatory enforcement under former President Biden. The move has been welcomed by many in the blockchain space, who view it as a step towards regulatory clarity and stability for the growing digital asset sector.