SEC Testifies on Clear Crypto Oversight, Signaling Major Regulatory Breakthrough for Digital Assets

CN
4 hours ago

U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins testified before the U.S. House Financial Services Committee on Feb. 11 and shared on social media platform X that he outlined enforcement, disclosure reform, digital asset policy, and market oversight priorities as the agency moves toward 2026.

He said:

“A federal framework for crypto markets is long overdue.”

“As Congress completes its vital work, our coordination with the CFTC through Project Crypto will help deliver clarity on regulatory obligations for investors & innovators,” the SEC chairman added.

In his testimony, Atkins emphasized the need to provide regulatory clarity for digital assets as Congress advances the CLARITY Act. He pointed to coordination with Commodity Futures Trading Commission (CFTC) Chairman Mike Selig through a joint Project Crypto initiative, which will evaluate a token taxonomy to help investors and innovators understand their regulatory obligations.

The SEC will also consider exemptions that would allow certain market participants to move and transact on-chain. Atkins highlighted work led by Commissioner Hester Peirce and the agency’s Crypto Task Force, noting that staff have delivered more clarity in the past year than in the prior decade, while adding that durable market structure legislation is essential to future-proof the rulebook.

Beyond crypto policy, Atkins described returning to the SEC nine months ago with a mandate to refocus on protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. He cited the scale of America’s $124.3 trillion capital markets and cautioned that regulatory requirements have expanded significantly over time, including $2.7 billion in annual public company reporting costs.

Atkins outlined a three-part plan to re-anchor disclosures in materiality, depoliticize shareholder meetings, and provide litigation alternatives for public companies. He also directed a comprehensive review of the Consolidated Audit Trail, detailing cost reductions of about $92 million in 2025 and additional projected annual savings of $7 million to $9 million. The chairman further referenced a 9.4 percent reduction in the Public Company Accounting Oversight Board budget and reiterated a renewed enforcement focus on fraud, insider trading, accounting misconduct, and cross-border violations.

  • What are the SEC’s main priorities for 2026 under Paul Atkins?
    Targeted enforcement, streamlined disclosures, and clear digital asset regulation are central to the SEC’s 2026 agenda.
  • How will the SEC address fraud in U.S. capital markets?
    The agency plans to intensify targeted enforcement and leverage its Cross-Border Task Force to protect investors domestically and globally.
  • What changes are coming to SEC disclosure requirements?
    Disclosure rules will be modernized and streamlined to make reports more meaningful and less burdensome for investors.
  • What is Project Crypto and why does it matter?
    Project Crypto coordinates with the Commodity Futures Trading Commission to clarify regulatory obligations for crypto assets.

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