On May 12, 2025, SEC Chairman Paul Atkins outlined a transformative initiative to promote tokenization, emphasizing a “rational regulatory framework” for crypto asset markets during a Crypto Task Force Roundtable. A former SEC Commissioner (2002-2008) and CEO of Patomak Global Partners, Atkins aims to position the U.S. as the “crypto capital of the planet,” aligning with President Trump’s vision. His leadership marks a shift from the enforcement-heavy approach under Gary Gensler, focusing on clear rules for issuance, custody, and trading of crypto assets to foster innovation while curbing fraud.
Through blockchain-based solutions, Atkins’ effort demonstrates how tokenization may improve deal finality and lower trading costs, hence increasing market efficiency. By digitizing assets like securities and carbon credits (e.g., JPMorgan’s Kinexys), tokenization transforms illiquid assets into liquid opportunities, driving capital formation. The SEC’s approval of a Solana staking ETF by REX Shares and Osprey on July 2, 2025, and guidance on broker-dealer custody reflect this pro-innovation stance. Daily trading volumes for tokens like PENGU ($475M-$814M) underscore market enthusiasm, with platforms like Solana and Ethereum poised to benefit.
The SEC’s framework aims to keep U.S. innovation onshore by offering conditional exemptive relief and modernizing rules, such as adapting Form S-1 for crypto assets. This could attract institutional investment and elevate DeFi markets, with governance tokens gaining traction. It is anticipated that Atkins’ advocacy for openness and investor protection would establish a global benchmark, impacting global financial technology laws and bolstering American dominance in the cryptocurrency space.
While Atkins supports “super apps” for trading securities and non-securities, modernizing the ATS regime, and self-custody, he stresses robust fraud prevention. The Crypto Task Force, led by Commissioner Hester Peirce, continues to engage industry leaders through roundtables, ensuring a balanced approach. However, aligning legacy regulations with blockchain’s decentralized nature remains a challenge, requiring careful rulemaking to avoid stifling innovation.
