SEC's Atkins Advocates On-Chain Capital Formation with Clarity

Atkins Calls for Clear Rules on Crypto Capital Formation

Paul Atkins, former Chairman of the U.S. Securities and Exchange Commission, addressed the OECD’s Roundtable on Global Financial Markets in Paris. He argued for a regulatory framework that fosters innovation, enhances international cooperation, and lowers barriers for entrepreneurs seeking capital through on-chain methods.

Predictable Rules Over Selective Enforcement

In his keynote, Atkins stated the SEC should move away from selective enforcement and provide predictable rules. He emphasized the need for entrepreneurs to raise capital without constant legal uncertainties.

Atkins suggested that most crypto tokens should not be classified as securities, criticizing past SEC approaches that forced crypto firms to spend heavily on legal defenses instead of business development. He argued this approach has driven innovation and jobs overseas.

He noted the SEC’s "Project Crypto" aims to modernize regulations, enabling digital platforms to offer trading, lending, and staking services under a unified regulatory framework.

Atkins promised to create a business environment that encourages startups and innovators to build in the U.S., aligning with directives from the President’s Working Group on Digital Asset Markets.

Global Cooperation and the Role of Technology

Atkins emphasized the significance of global cooperation, praising the early adoption of the MiCA framework in Europe and advocating for closer collaboration between the U.S. and the EU. He also noted the Senate Democrats' release of their Clarity Act framework, signaling support for clearer crypto regulations.

Atkins also discussed how AI is transforming finance, highlighting the rise of "agentic finance"—autonomous AI systems capable of executing trades and managing risk at speeds exceeding human capabilities.

He stated that integrating AI and blockchain could reduce costs, speed up trading, and provide investors with tools previously exclusive to Wall Street. He cautioned regulators against hindering innovation.

Atkins concluded by restating the SEC’s mission: to protect investors and maintain fair markets, ensuring digital innovation occurs safely while giving entrepreneurs room to grow.

For firms navigating the evolving regulatory landscape, solutions like Codeum’s KYC services can help maintain compliance and build trust in the crypto space.