SEC Chair Slams Gensler for Stifling Crypto Growth

• Atkins stated that Gensler’s muddled policies were stifling innovation in the cryptocurrency market.
• SEC aims to revise custody rules for blockchain technology.

Washington, D.C. On April 25, 2025newly appointed SEC Chairman Paul Atkins delivered a scathing assessment of the Gary Gensler Administration. Speaking at the SEC Crypto Task Force Roundtable, Atkins pointed to regulatory uncertainty as being a hurdle that has prevented innovation in the cryptocurrency space for the past few years.

Atkins articulated the necessity of a defined framework. He said the absence of defined rules has slowed the progress of the crypto industry to a great extent. Chairman’s comments could mean that the SEC is evolving its attitude towards digital assets and is aiming to make the atmosphere more friendly for innovation.

The roundtable discussed on a Friday how market participants can safely deal with crypto assets under current federal securities laws. Attendees were also thanked by Atkins for taking time and expertise to help tackle these urgent matters.

A Call for Regulatory Clarity

In his speech, Atkins also said that the policies of the SEC in the past created uncertainty. According to him, such ambiguity has hindered the growth of blockchain technology as well as digital assets. “The market has been held back by unclear regulations, which the SEC unfortunately promoted,” Atkins remarked, rephrasing his earlier statement to underline the impact on innovation.

He said he would also work with industry stakeholders and Congress. Instead, he is looking to implement a practical regulatory environment for crypto assets. He also said that existing Exchange Act rules should be revised to recognize the unique attributes of blockchain technology.

The comments come as the crypto industry is on the rise. As Reuters reports, Bitcoin’s recent spike to $100,000 in December 2024 necessitated that a positive regulatory framework be even more necessary. Thus, Atkins’ leadership could be the point of change for the sector that can drive other adoption and innovation.

Atkins also praised Commissioner Hester Peirce for her work in making sound crypto policy. Regarding her role in the development of a balanced approach towards regulating the securities market and her impact on the SEC, he emphasized her role.

Shifting Policies and Industry Impact

The SEC’s position on digital currency is already changing. The agency withdrew Staff Accounting Bulletin 121 in January 2025, which forced banks to consider crypto holdings as liabilities. This decision is an important barrier to institutional adoption of digital assets coming down, which Peirce celebrated.

In February 2025, the Securities and Exchange Commission (SEC) reiterated that the majority of meme coins fail to satisfy the requirements for classification as securities under United States law. However, this has worked out to be a huge boon for crypto projects, including of several meme coins linked to President Donald Trumpwhose $TRUMP coin has a market cap of $2.7 billion.

According to what Atkins shared with the panel, there is still a great deal of work to be done.. He raised questions about the viability of the current “special purpose broker-dealer” regime for crypto market participants. A new framework to support the growth of the industry may be required, the chairman said.

Atkins, however, made it quite plain that the SEC intends to maintain regulation of corporations based in other countries. Firms that do not meet U.S. regulations, including Chinese ones, could be delisted, he said. For the most part, this is a balanced approach that allows for innovation, but has regulations in place.

Now that Atkins is taking the reins of the SEC, he appears to be keen to renew its relationship with the crypto industry. His focus on clarity and innovation could help to create a stronger, better, and more open digital asset market in the United States.