SEC Chair Explains How New Rules Entice Crypto Firms Home

SEC Chairman Paul Atkins presented the agency’s proposed Regulation Crypto Assets as a strategy to attract crypto companies that have left the United States over the past four years.

Enforcement vs. Clear Guidance

Atkins argued that heavy‑handed enforcement, rather than ambiguous rules, drove legitimate crypto fundraising overseas. He said founders need clear guidance instead of prolonged court battles.

Outdated Securities Framework

The chairman noted that existing securities regulations, dating back to the 1930s, were never designed for token‑based assets and have hindered capital formation in the sector.

International Capital Flow

Atkins emphasized that investors can move money across borders with ease online, and restricting them domestically only pushes activity abroad. He stated that the United States must provide a legal framework that allows investors to fund crypto projects at home.

Call for Legislative Action

Beyond rulemaking, Atkins urged Congress to pass the CLARITY Act, which would split crypto oversight between the SEC and the Commodity Futures Trading Commission (CFTC). He argued that only legislation can create durable rules that future SEC leadership cannot easily reverse.

Outlook

The likelihood of the CLARITY Act passing in 2026 appears to be decreasing, but Atkins framed both the rulemaking and potential legislation as part of a unified effort to bring crypto capital back to the United States.