The SEC is signaling a shift towards a more supportive regulatory approach for crypto after Chair Paul Atkins acknowledged past missed opportunities. At the same time, Bitcoin is trading near $67,000, highlighting how shifting U.S. policy sentiment could strengthen market confidence and accelerate institutional adoption.
Speaking at recent policy discussions and briefings, Atkins criticized the regulatory approach taken under former SEC Chair Gary Gensler during a fireside chat, noting that the agency previously relied heavily on enforcement-driven oversight.
The agency said that much of the crypto should be treated as securities. It brought several cases against crypto companies, most of which were for failing to register their products or platforms. That approach created friction between regulators and industry.
Many crypto firms said they believed regulations were unclear and that the SEC was regulating mainly through lawsuits rather than issuing guidance. Atkins said that his agency needed to respond quickly to innovate. He said the last few years had given the United States a lost opportunity, especially as other nations tried to entice crypto entrepreneurs to invest amid clearer regulatory frameworks.
The SEC has made moves that now seem closer to support since President Trump took office. The agency has also formed a dedicated crypto task force and has withdrawn multiple enforcement cases against prominent industry players.
It has also recently announced “Project Crypto,” an effort to modernize its rules to better reflect digital asset technologies. Those details aren’t fully developed yet, but the tone from the agency’s leadership has noticeably changed.
Bitcoin steadies as policy outlook brightens
Meanwhile, Bitcoin has hovered around $67,000. While Bitcoin may be volatile, the market doesn’t seem to be panicking too much over regulatory changes. Rather, many people are assessing whether a predictable U.S. approach could boost confidence.
Regulatory clarity is often cited as a crucial factor for institutional adoption. Big asset managers, pension funds, and banks avoid markets with ambiguous rules. When regulators offer more precise instructions, it mitigates legal risk and helps institutions get in on the action to a greater extent.
The SEC’s recent actions are an effort to offer that clarity. For example, earlier this week, the agency granted exemptive relief to WisdomTree for its WisdomTree Treasury Money Market Digital Fund.
The approval enables 24/7 trading and instant settlement—the first of its kind in the United States for a tokenized money market product.
SEC turns attention to tokenization and financial infrastructure
While the public is focused on Bitcoin’s price in particular, Atkins sees more potential in distributed ledger technology. He said he was particularly excited about blockchain systems and the way they might expedite payment clearing and settlement.
In traditional markets, clearing and settlement, the final step in completing a financial transaction, can take days. Blockchain technology, by contrast, can settle transactions almost instantly. This productivity could cut costs and risks to financial firms.
Atkins described tokenization as the process of turning stocks, bonds, and funds into programmable tokens on distributed ledgers. He also said the SEC has sanctioned tokenized money market mutual funds and suggested that tokenized bank deposits could be next. If that does happen, it would mark a seismic change in how traditional financial products are created, bought, and sold. Bitcoin’s near $67,000 market price so far reflects a broadly positive market.
