Industry Participants Share Expectations for New SEC Chair

The cryptocurrency industry braces for significant regulatory transformation following the appointment of Paul Atkins as the head of the SEC. Cointelegraph has compiled opinions from several industry leaders.

During his confirmation hearings, Atkins identified the establishment of a clear and understandable regulatory framework for digital assets as his priority. He emphasized his intention to focus on enhancing market transparency and strengthening investor protection.

Atkins’ appointment marks a shift in the SEC’s direction. His approach contrasts with that of former chair Gary Gensler, who often relied on “regulation by enforcement.”

Before his confirmation, the new agency chair served on the board of the nonprofit organization The Digital Chamber. The group focuses on promoting and lobbying for blockchain technology, Bitcoin, and other cryptocurrencies in U.S. political circles.

From 2002 to 2008, Atkins was an SEC commissioner, where, according to Trump, he “strongly advocated for transparency and investor protection.”

What Will Atkins Bring?

CoinFund President Chris Perkins anticipates reduced regulatory uncertainty under the new administration.

“We were under a reign of terror from the regulatory authorities during the [Joe] Biden administration. Investors are comfortable with market risk, but they dislike taking on reputational risk, along with regulatory risk,” the entrepreneur lamented.

Perkins emphasized that a change in the regulatory climate could be a catalyst for growth.

“Right now, we have a perfect storm — the arrival of new institutional capital and a fresh wave of developers. I expect this to be a golden age for venture investments and value creation,” shared the CoinFund president.

CLO of Bitwise Asset Management, Katherine Dowling, supported Perkins.

“The mood has already changed. We are seeing […] the dismissal and cessation of several cases against crypto companies, […] as there is much work to be done on defining digital assets,” she noted.

CFO of Exodus, James Gernetzke, expressed expectations for a return to “more normal timelines” for accessing capital markets.

“I think the IPO peak will be in about 10-12 months, it will definitely happen,” predicted the top executive.

Perkins recalled the preparation of a market structure bill.

“The document will have a really big impact […] because then I will know what my asset is, and I will have a capital formation process. Disclosure frameworks. […] It will be amazing,” he explained.

In April, the SEC’s dedicated “crypto group” held its second scheduled roundtable with industry representatives on digital asset trading.

Earlier, the Commission’s corporate finance division outlined the characteristics of stablecoins not classified as securities.

Previously, the SEC excluded the connection of mining using the Proof-of-Work consensus algorithm with investment contracts.