- SEC Chair Paul Atkins supports letting registrants custody and trade both securities and crypto assets within a unified framework.
- The SEC plans to absorb FinHub’s functions and adopt new draft rules encouraging innovation in digital finance.
- Atkins criticized past crypto enforcement tactics and promised more transparency and practical guidance moving forward.
SEC Chairman Paul Atkins announced plans to allow registered firms to handle both securities and non-securities, including digital assets, within a single regulatory framework.
Speaking at the SEC Speaks conference in Washington D.C. on May 19, 2025, Atkins said this approach could reduce investor costs and bring digital asset markets into a regulated environment. The proposal marks a shift in the agency’s stance toward cryptocurrency and other emerging financial technologies.
Atkins: Firms Should Handle Securities, Crypto “Under One Roof”
Atkins stated that registrants should be permitted to custody and trade all asset classes “under one roof.” He also noted that combining these functions could pave the way for a future “super-app” structure that merges traditional and decentralized financial services.
The announcement follows growing demand for a consistent approach to handling crypto and tokenized assets. While details remain under development, Atkins confirmed that the staff is actively preparing draft rule proposals.
SEC to Move Beyond ‘Shoot-First’ Crypto Enforcement, Adapt Rules
Atkins criticized the SEC’s earlier “shoot-first-and-ask-questions-later” strategy, calling it a barrier to progress. He acknowledged that past engagement with crypto firms often led to subpoenas rather than solutions, undermining trust in the regulatory process. To change that, he directed the Division of Corporation Finance to maintain transparent communication with the public and industry participants.
The chairman emphasized that the SEC must adapt its rules when existing frameworks fail to reflect modern technology. Atkins cited previous innovations — including the launch of SPDR ETFs and Reg ATS for trading systems — as examples of how regulatory flexibility can foster market evolution.
He also referenced recent FAQs from the Division of Trading and Markets, which offer practical insights to broker-dealers and transfer agents operating in the crypto space.
FinHub Functions To Be Absorbed Across the SEC
Atkins confirmed that the SEC will dismantle FinHub, the agency’s innovation-focused office, and integrate its functions into other departments. Established in 2018 to address blockchain and digital assets, FinHub had come to be viewed as an enforcement tool rather than a support mechanism.
Atkins argued that its small size limited its usefulness and that staff expertise would be better distributed agency-wide.
Atkins: SEC Must Not Resist Market Innovation, Change is Constant
The chairman said the decision aligns with a broader goal of embedding innovation into the SEC’s culture rather than isolating it within a niche unit. He also thanked the Crypto Task Force and Commissioner Hester Peirce for their continued contributions to crypto policy discussions.
Atkins closed by stating that the SEC must no longer resist change.
“The markets innovate,”
he said,
“and the SEC should not be in the business of telling them to stand still.”
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