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The crypto industry’s hopes of improving relations with the SEC under Paul Atkins received a major boost with the introduction of a 90-day plan that focuses on clearer regulations, stopping unnecessary lawsuits, and removing outdated rules. The proposal is expected to rebuild trust and encourage innovation. The next three months will be crucial in crafting a more balanced regulatory approach under Trump.
As a pro-crypto advocate, the SEC under Paul Atkins could signal potential regulatory changes and improved cryptocurrency relations under the Trump administration. This shift could lead to clearer and more supportive regulations for the crypto industry.
In a statement, the Digital Chamber said: “The digital asset industry strives to operate responsibly, and the SEC must recognize this in order to foster a productive and transparent ecosystem.” The group stressed the need for mutual trust.
The SEC has been criticized for “regulation through enforcement,” which has caused a lot of confusion and slowed innovation. The Digital Chamber’s Token Alliance is calling for change by urging the SEC to build trust with the crypto industry.
She believes this could happen if the SEC recognizes that most cryptocurrency players are acting responsibly. She also says a more transparent approach would help both sides move forward.
The Token Alliance has proposed a 90-day plan to change the way the SEC handles cryptocurrency regulations. One key proposal is to immediately review all current cryptocurrency investigations, notices, and lawsuits.
The plan also calls for a temporary halt to litigation in cases that do not involve fraud, investor harm, or immediate risk. That includes major cases involving companies like Binance, Coinbase, and Ripple, which have regularly caused friction between the SEC and the cryptocurrency industry.
The goal is to create a more balanced approach and avoid stifling innovation. The goal of this reset is specifically to build trust and remove confusion in the digital asset space.
The coalition proposes removing old rules that have caused confusion, including the 2019 framework applying the Howey test to digital assets and the 2018 “Hinman Letter.”
The group also wants to stop regulating the industry through enforcement actions. Instead, it urges the SEC to create clear and consistent rules to help companies. These changes are essential to clear up confusion, make the market fairer, rebuild investor confidence, and encourage innovation in the crypto world.
Another priority is dealing with the burden of SAB 121, which forces companies that hold cryptocurrencies to include them in their liabilities.
The Token Alliance argues that this rule is pushing investors away from the US market and toward riskier options abroad. Although President Biden has rejected a bill to repeal SAB 121, the new administration may be able to reverse the decision and provide relief.
It also mentioned the reconsideration of the SEC’s plan to expand “exchanges” to cover decentralized finance (DeFi) platforms under Rule 3b-16. Critics argue that this could stifle innovation in the DeFi space and diminish its benefits.
Paul Atkins is expected to take a different approach than outgoing Gary Gensler. Atkins is likely to work closely with Commissioners Hester Peirce and Mark Ueda, who have been critical of the current regime’s policies on digital assets. Together, they could steer the SEC toward a more fair and transparent regulatory system.
The recent conversations the Token Alliance had with Commissioners Pierce and Ouida were positive. Both commissioners showed interest in engaging with the crypto industry. Cryptocurrency advocates see this as a good sign for future discussions and collaboration.
The next 90 days will reveal whether the SEC is able to build trust with the cryptocurrency industry and adopt a more balanced approach.
