SEC’s Paul Atkins to Notify Crypto Firms Before Enforcement
SEC enforcement policy is shifting under Chair Paul Atkins. He will notify crypto firms of technical violations before formal investigations. This more predictable SEC enforcement replaces Gary Gensler’s regulation-by-enforcement approach. Firms, including Binance, Coinbase and Ripple, saw major cases dropped and SAB 121 rescinded. Atkins clarified most tokens are not securities and supports tokenized stocks and bonds. While maintaining a firm stance on fraud, this softer enforcement signals a more business-friendly SEC. Traders should monitor upcoming SEC policy updates for impacts on compliance and market sentiment.
Bullish
The policy shift toward advance notifications and clearer guidelines reduces regulatory uncertainty. By dropping major cases and clarifying token securities status, the SEC is fostering a more business-friendly environment. This should bolster trader confidence, encourage market participation and support price appreciation over time.