That era, however, appears to be ending. Under the leadership of new chair Paul Atkins, the regulator is rolling back its “enforcement first” playbook and signaling a more cooperative relationship with digital asset firms.
Atkins, confirmed in April by a narrow Senate vote, said in a recent Financial Times interview that companies should no longer fear sudden raids or lawsuits over minor violations. Instead, the agency will issue preliminary notices, giving businesses time to address technical missteps before formal action is considered. In his view, the regulator should not be “shooting first and asking questions later.”
The change marks a dramatic departure from the tenure of former chair Gary Gensler, who became known for an aggressive campaign against crypto platforms. Ripple Labs, Terraform Labs, Coinbase, Binance, and Kraken all faced lawsuits under his watch, cases that forced the industry to spend billions in legal battles. Critics accused the agency of creating rules by litigation rather than providing clear regulatory frameworks.
Atkins himself echoed those criticisms, arguing that many past cases lacked precedent and predictability. He has also taken a softer stance on the long-running debate over token classification. While Gensler maintained that most cryptocurrencies fall under securities laws, Atkins has suggested that the majority should not be treated as such. He has also endorsed the idea of trading tokenized stocks and bonds, provided they carry the same rights as the underlying instruments.
To reinforce this new direction, the SEC has created a Crypto Task Force aimed at engaging directly with the industry. Several enforcement actions launched during Gensler’s leadership have already been dropped, reflecting the administration’s desire to open dialogue rather than escalate conflict.
Atkins’ arrival reflects a broader policy shift under President Donald Trump, who has sought to encourage blockchain innovation while reducing what he sees as regulatory overreach. For crypto firms long wary of regulators, the next six months may serve as a test of whether this cooperative model can replace the combative stance of the past.
Source: FT
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