In his first public address as Chairman of the US SEC, Paul Atkins laid out his regulatory vision during the SEC Speaks conference on May 19, 2025.

He set out a forward-looking agenda focused on innovation, market access, and regulatory clarity. Drawing from historical examples and past Commission decisions, Atkins emphasized the need for the SEC to enable, not impede, technological and financial innovation.

He opened with a reflection on how the SEC has responded to disruption in the past – from the 1960s paperwork crisis to the advent of ETFs and alternative trading systems. He credited successful reforms to moments when the agency worked collaboratively with industry and used its rulemaking power constructively. He underscored that the Commission must embrace change and act as a partner in progress – not a gatekeeper.

A significant portion of Atkins’ remarks centered on the Commission’s past reluctance to engage productively with crypto markets. He acknowledged that market participants were often met with enforcement, not guidance. That approach is changing. Atkins announced that SEC Divisions have been directed to begin drafting formal rule proposals to bring regulatory clarity to digital asset markets.

He also supports allowing registered entities to custody and trade both securities and non-securities – a potentially transformative move for firms active in crypto.

Fintech

Atkins signaled a shift in how the SEC approaches fintech by proposing to disperse FinHub’s functions throughout the agency rather than isolating them. The goal is to make innovation a cultural and operational norm across all Divisions – not just the responsibility of a single office.

Calling it a “common-sense” reform, Atkins proposed reexamining the 23-year-old practice that restricts retail access to closed-end funds investing in private funds. With private fund assets now approaching $31 trillion, he wants to broaden investor access while maintaining appropriate protections and disclosures – particularly around liquidity, conflicts, and fees.

Atkins closed with a warning about the ever-growing costs and data risks of the Consolidated Audit Trail (CAT). Now exceeding $250m annually, the system’s financial burden and data centralization risks have sparked concern from both industry and lawmakers. He has ordered a comprehensive review of the system’s scope, data requirements, and costs.

The remarks signal a regulatory pivot: one that favors engagement over enforcement, access over restriction, and clarity over confusion. But with so many potential rulemakings in motion – especially around crypto, private funds, and market infrastructure – compliance expectations are shifting quickly.

What this means  

Atkins’ speech reaffirmed several of his long-held views: support for crypto, a willingness to challenge legacy rules, and a focus on cost-benefit analysis of regulatory initiatives. His comments raise several questions: 

• Will we see a reproposal of the Enhanced Safeguarding Rule with crypto custody in mind?
• Could new rulemakings reshape how registrants operate in digital markets?
• How will the Republican-led Commission set its agenda moving forward? 

This was Atkins’ first major speech as SEC Chair. How these priorities take shape will become clearer in the months ahead.

Janaya Moscony, President, SEC3. As a former SEC regulator, Janaya has significant experience in the examination, implementation and enforcement of securities regulations. Contact: janaya@sec3compliance.com