U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins indicates the agency is attempting to update outdated rules to suit the rapidly evolving cryptocurrency industry.
Friday, Atkins appeared on Mornings With Maria. The subject was his new project called Project Crypto. The project is seeking to implement concepts from President Donald Trump’s crypto working group.
The idea is to make America more welcoming to digital assets while ensuring investors are sufficiently protected.
Atkins stated the SEC is “mobilizing all our divisions and offices” to address outdated rules, some of which are nearly a century old. Among the areas of concentration are custody requirements on how broker-dealers, asset managers, and investment advisers can securely hold and maintain cryptocurrencies.
“We don’t want crypto assets on a flash drive in someone’s desk,” Atkins said. “They need to be safeguarded. Bringing these rules up to date will provide more assurance to market participants and investors.”
While the SEC is waiting for further action from Congress, such as further action from the newly passed GENIUS Act, Atkins believes that the agency is already able to act in most aspects. He reiterated the necessity of “clarity and certainty” in the regulations of digital asset transactions.
Atkins also touched on recent legal developments impacting payment systems. According to him, a court ruling on debit card fees can lead to better real-time payment networks.
He indicated that blockchain technology can facilitate speedy settlements but cautioned that some protection, such as brief delays, might be needed to correct errors.
“Atkins said that the longer a transaction takes to finish, the more chance there is for unexpected problems.” He highlighted that the SEC is focused on both speed and safety while updating the U.S. financial system.
