Paul Atkins, the new SEC president appointed by Trump, breaks away from Gary Gensler’s punitive strategy and promises warnings before any sanctions are imposed on crypto companies.
From Gensler to Atkins: two opposing visions
Gary Gensler had imposed record fines on banks, brokers, and crypto platforms, believing that regulation should start with repression. This method was criticized for ‘shoot first, ask questions later.’ Paul Atkins, a Republican and former SEC commissioner, turns this logic on its head:
If you lie, steal, or betray your investors, we will crush you. But for a technical violation, a warning should come first.
Paul Atkins, from Paris in the Financial Times
An openly pro-business climate
Since January, several investigations into crypto platforms have been quietly dropped. This decision reflects Donald Trump’s pro-market agenda, self-proclaimed champion of digital assets. Trump has personally generated tens of millions of dollars in revenue from his crypto ventures, adding over a billion to his theoretical fortune. Atkins believes the SEC should abandon ‘formulaic’ sanctions based on company revenue and return to a logic of gradual compliance. ‘Like in school, the teacher lays down the rule and gives six months to rectify,’ he summarizes.
The promise: making the United States the global capital of crypto
The goal is clear: transform the United States into an essential hub for digital finance. Unlike Gensler, who viewed almost all tokens as securities, Atkins argues that the majority are not. He aims to create a specific framework for issuing and trading tokenized assets, such as stocks, bonds, or derivatives, with rights equivalent to traditional versions but available 24/7 via blockchain. The FTX example remains memorable. Atkins points out that while investors in the offshore branch lost everything, those in the regulated US subsidiary recovered their funds. This, according to him, proves that ‘only suitable regulation on US soil can truly protect investors.’
Towards a new balance between innovation and regulation
The upcoming months will be crucial. The SEC is working on rules regulating smart contracts and tokenization of financial securities. But Atkins warns: companies already offering trading of tokenized US stocks must ‘proceed with caution’ until the new framework is finalized. With this political shift, the crypto industry gets a reprieve and a strong signal: Washington no longer wants to drive projects offshore. But the balance is delicate. Between investor protection and the promise of becoming the ‘crypto capital of the world,’ the Trump-era SEC is playing a tight game.
