Paul Atkins Promises Crypto Firms Notice Before SEC Takes Action

In a conversation with the Financial Times on September 15, SEC Chair Paul Atkins shared plans to move away from the past strategy of launching enforcement actions without warning.

Atkins explained that companies working with digital assets will be given an initial heads-up if the agency identifies technical rule breaches.

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Instead of surprising firms with legal action, Atkins said the commission will issue a preliminary notice before taking any steps. He told the FT:

You can't just suddenly come and bash down their door and say uh-uh, we caught you, you’re doing something and it’s a technical violation.

He also criticized past SEC actions that lacked consistency and clear legal backing. Atkins noted that many felt the agency’s earlier decisions were unpredictable and not based on past rulings.

Describing the former approach as one where the SEC "would shoot first and then ask questions later", he said that a more thoughtful process is being introduced. Under the new method, firms may have several months to address concerns before any official action is taken.

Additionally, Atkins pushed back against the idea that most crypto tokens should be considered securities. He stated that many do not fall under the same rules as traditional financial instruments.

Recently, Atkins introduced a proposal that would allow companies offering crypto services to operate under a single regulatory system. What does it include? Read the full story.