Emre Yumlu 
Paul Atkins, the newly appointed Chair of the U.S. Securities and Exchange Commission (SEC), has signaled a major shift in how the regulator will deal with the cryptocurrency industry. Moving away from the heavily criticized “enforcement-first” approach of the past, Atkins emphasized that companies will now receive advance notice before any regulatory action is taken.
“We’re Not Going to Kick Down the Door”
In a recent interview, Atkins underlined that sudden enforcement actions for technical violations are no longer the norm. Instead, businesses will be given the opportunity to address issues ahead of time. “It’s not right to suddenly knock on a company’s door and impose penalties over a minor technical breach. Firms should expect to be notified first,” Atkins explained.
A Break from the Gensler Era
This policy marks a clear departure from the approach under former SEC Chair Gary Gensler. During his tenure, the SEC launched high-profile lawsuits against some of the biggest names in crypto, including Ripple Labs (2020), Terraform Labs (2022), and exchanges such as Binance, Coinbase, and Kraken in 2023. These actions not only disrupted the industry but also cost companies billions in legal fees.
Ending the “Shoot First, Ask Questions Later” Approach
Atkins criticized past enforcement decisions, noting that many lacked legal precedent and predictability. “The SEC was acting without clear grounding, often shooting first and asking questions later,” he said. Under his leadership, businesses could be granted up to six months to make necessary adjustments before enforcement measures are considered.
Most Tokens Are Not Securities
Another significant shift is Atkins’ stance on digital assets. He argued that the majority of cryptocurrencies should not fall under securities laws. Moreover, he expressed support for tokenized versions of stocks and bonds, stressing that they should carry the same legal rights as their underlying traditional assets.
Signs of a New Era at the SEC
Following his confirmation on April 9, Atkins has already begun restructuring the agency’s approach to digital assets. The SEC has formed a dedicated “Crypto Task Force” to work more closely with the industry, while several investigations and enforcement actions initiated under the previous leadership have been dropped.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.