Within 48 hours of the new chairman taking office, the SEC has become the "crypto babysitter."

Author: Ashley, BlockBeats

On April 10, 2025, the SEC welcomed its new chairman, Paul Atkins. This leader, nominated by President Trump and confirmed by the Senate with a vote of 52 to 44, immediately stated that establishing a regulatory framework for digital assets would be his "top priority." He promised to create a transparent SEC that widely incorporates the opinions of the industry and consumers, fundamentally changing the previous closed and high-pressure regulatory style. Paul Atkins quickly became the focus of the crypto industry, and within 48 hours of taking office, a series of favorable regulatory actions followed. Multiple crypto-related lawsuits initiated during the tenure of former SEC Chairman Gary Gensler were dismissed, the SEC issued a statement urging detailed disclosures when issuing cryptocurrencies, and he personally guided project teams on how to issue tokens. Such intensive actions have led people to wonder: Is Trump's SEC going to be the "nanny" of the crypto industry?

The New SEC Chairman's "Three Fires" Bring Frequent Good News

Paul Atkins is not a new face at the SEC; he is also an experienced player in the crypto space. From 2002 to 2008, he served as an SEC commissioner, accumulating rich regulatory experience. After that, he founded Patomak Global Partners, providing compliance and risk strategy consulting for financial and digital asset companies, including crypto exchanges and DeFi platforms. He also led the crypto advocacy organization Token Alliance, publicly supporting innovation in digital assets. It has been disclosed that he and his spouse hold crypto-related assets worth up to $6 million.

On April 9, 2025, the Senate confirmed Atkins's nomination with unanimous support from the Republican Party, marking a significant shift in the SEC's approach from the law enforcement priority style of former chairman Gary Gensler to a pro-market orientation. During Gensler's tenure, over 100 crypto-related enforcement actions were initiated, emphasizing that most tokens fell under the jurisdiction of securities law and expressing skepticism towards the industry. In contrast, Atkins advocates for a principle-based regulatory framework that provides clear and feasible rules for digital assets. At a Senate Banking Committee hearing on March 28, he explicitly stated that digital assets are the SEC's top priority this year, promising to collaborate with the Commodity Futures Trading Commission (CFTC) and Congress to fill regulatory gaps and enhance the United States' global competitiveness in Bitcoin and blockchain finance.

Atkins succeeded Mark Uyeda, who served as acting chairman after Gensler's resignation in January. Under Trump's "crypto-friendly" administration, Uyeda's brief tenure laid the groundwork for the SEC's transformation, such as dismissing multiple crypto-related enforcement cases and abolishing the internal rule SAB 121 that restricted the custody of crypto assets by publicly traded companies. Atkins's appointment accelerates the trend of regulatory easing, and his term will last until June 2026, during which he may promote significant changes in the crypto regulatory policy framework.

Atkins's "first fire" was directed at the financial markets, injecting a strong dose of confidence into the financialization of crypto assets. On his first day in office, April 10, the SEC approved options trading for a spot Ethereum ETF, a milestone that provides investors with more avenues for participation. Additionally, Atkins supports simplifying private market rules, proposing to define accredited investors based on financial sophistication rather than net worth, which may further lower the barriers to crypto investment.

The "second fire" provided future regulatory guidance. On his second day in office, the SEC issued a non-binding guidance statement, declaring that "these offerings and registrations may involve equity or debt securities of issuers related to networks, applications, and/or crypto assets. These offerings and registrations may also involve crypto assets that are part of or bound by investment contracts (such crypto assets are referred to as 'underlying crypto assets')." The SEC urged companies issuing or dealing with tokens that may be considered securities to provide detailed disclosures, including business content, token roles, network development milestones, and the rights of token holders. Although it has not yet clarified which cryptocurrencies fall under securities, it attempts to provide a clearer reference framework for the industry based on the SEC's observations of existing company disclosure information. Such detailed "on-the-ground guidance" also reflects the SEC's shift from "regulating by punishment" to "regulating by guidance," hoping to reduce market uncertainty through communication and transparency, preventing the industry from wandering on the edge of danger and having to repeatedly test the waters.

The "third fire" melted the "difficult cases" frozen during Gary Gensler's tenure, as the SEC showed a more lenient attitude towards past crypto lawsuits. On April 11, Helium network developer Nova Labs announced that the SEC had dropped its charges of selling unregistered securities against it. Previously, the SEC had initiated lawsuits against Nova Labs for three tokens—HNT, MOBILE, and IoT. With Atkins's appointment, this lawsuit quietly came to an end, setting a positive precedent for similar projects. On the same day, the SEC also reached a settlement in its long-standing lawsuit with Ripple, with both parties submitting a joint motion to suspend the appeal, and Ripple paying a $50 million fine, with the remaining $75 million refunded to the company.

Furthermore, to promote regulatory clarity, the SEC's cryptocurrency working group plans to hold four public roundtable meetings from April to June 2025, covering topics such as crypto trading, custody, asset tokenization, and DeFi. Commissioner Hester Peirce referred to this as a "spring sprint towards crypto clarity," marking a shift from confrontation to cooperation by the SEC. The first meeting will focus on "tailored regulation for crypto trading," while subsequent meetings will explore the integration of traditional finance with blockchain and the spirit of DeFi in the United States.

What Other Moves Does the "Crypto Nanny" Have?

Atkins's intensive actions after taking office are closely related to the overall policy background of the Trump administration, which aligns highly with crypto policies.

After Trump returned to the White House, policies have frequently been relaxed. First, the approval progress for crypto ETFs has been impressive. Previously stalled ETF applications for XRP and Solana due to Gensler's tough stance are now receiving more lenient reviews within the SEC, and the industry expects multiple ETFs to be approved in 2025, significantly enhancing market liquidity. Secondly, market makers such as Citadel Securities and Wintermute are returning, promoting comprehensive improvements in market liquidity, trading efficiency, and regulatory compliance. Meanwhile, stablecoin legislation is also advancing rapidly. Trump has publicly supported stablecoins multiple times to increase demand for U.S. Treasury bonds, bolster the digital dominance of the dollar, and reinforce the dollar's global leading position. In April, the Senate Banking Committee passed the "GENIUS Act," proposed by Republican Senator Bill Hagerty, which sets licensing, reserve, and disclosure requirements for stablecoin issuance, providing a lightweight regulatory framework. Atkins stated that the SEC would coordinate with the CFTC to clarify the securities and commodity attributes of stablecoins and support state-level regulatory exemptions for stablecoins with a market cap below $10 billion to encourage innovation.

Moreover, just today, Trump signed a bill that repeals the IRS's broker rules for DeFi platforms, clearing obstacles for DeFi development. This rule, which was introduced in 2024, classified DeFi platforms as brokers and required them to submit tax forms for users, causing widespread dissatisfaction in the industry. Trump stated when signing the bill that this rule "hindered innovation in the U.S." and "violated the privacy of ordinary Americans." This is the first cryptocurrency-related law signed by the Trump administration, further demonstrating that from nominating a pro-market SEC chairman to abolishing restrictive rules, the Trump administration is striving to create a favorable environment for the digital asset industry, aiming to make the U.S. a global digital finance center.

Under Trump's leadership, the federal government seems to be forming a more relaxed atmosphere for crypto policy, and the SEC appears to be shifting from "regulatory iron fist" to "crypto nanny." The approval of multiple crypto ETFs, the dismissal of long-standing lawsuits, the return of several market makers, and the repeal of DeFi broker rules indicate that the Trump administration is attempting to stimulate industry growth by reducing regulatory barriers. However, this policy shift has also raised some concerns. Senator Elizabeth Warren criticized Atkins for his connections with Wall Street and FTX advisors, arguing that his background could undermine regulatory impartiality. Critics also contend that overly lenient regulation could lead to market chaos and even increase risks for investors.

Balancing strict market order regulation with nurturing industry innovation and growth is essential. In the future, whether this "crypto nanny" can find a balance between innovation and protection to establish the global position of the U.S. digital asset market will require time to test. It is foreseeable that, with the support of the Trump administration, the SEC's crypto policies will continue to be a focal point of global attention, and the future of the U.S. digital asset market may begin to write a new chapter from here.