The chairman of the SEC reflects on encryption regulation: from "ostrich policy" to proactive adaptation, integrating FinHub functions.

[The SEC Chair Reflects on Crypto Regulation: From “Ostrich Policy” to Proactive Adaptation, Integrating FinHub Functions] The U.S. Securities and Exchange Commission (SEC) released a speech by Chair Paul Atkins at the SEC Speaks conference. Atkins stated that previously, the SEC had a passive attitude towards Crypto Assets regulation, initially adopting an “ostrich policy” and later shifting to a law enforcement-first approach without establishing trust. Atkins believes that regulatory agencies should actively interact with the market and adjust rules to adapt to new technologies. Although the SEC has previously expressed a willingness to communicate with potential sign ups, it has not adjusted regulatory requirements, and leadership has long prevented staff from discussing complex legal issues with market participants. Now, Atkins has instructed the company’s finance department to interact transparently with the public. At the same time, various policy departments of the SEC are drafting proposals for rules related to Crypto Assets, but staff are still working to “clear the hurdles” through staff-level statements, such as the FAQ released by the Trading and Markets Division. Although the staff’s views are not rules or regulations of the Commission, they can provide useful insights to the public. Atkins also hopes that the Commission will allow SEC sign ups to host and trade securities and non-securities under the same roof. In addition, Congress has been asked to approve a reallocation of funds to integrate the agency’s strategic innovation with the functions of the Financial Technology Center (FinHub) into the agency’s other departments. Because it is seen as an enforcement tool, and is small in scale and inefficient, its principles and priorities will be incorporated into the SEC core, allowing innovation to be integrated into the entire SEC culture.