SEC Chair Paul Atkins Pledges End to 'Regulation by Ambush' for Crypto Firms

Core Viewpoint - The new SEC Chair, Paul Atkins, is shifting the agency's approach towards crypto firms, promising to provide warnings about potential violations before enforcement actions are taken, contrasting with the previous aggressive stance under Gary Gensler [1][2][3]. Regulatory Changes - Atkins has committed to ending the "shoot first" approach of the previous SEC, focusing instead on providing clear regulations and guidelines for the crypto industry [3][4]. - The SEC is working on "Project Crypto" to establish a clearer regulatory framework, which includes dropping numerous lawsuits and enforcement actions against major crypto firms [5][7]. Legislative Developments - The GENIUS Act has been signed into law, aiming to bring stablecoins into regulatory focus by 2026, with the CLARITY Act expected to follow [5]. - The CLARITY Act aims to create a clear market structure by defining the roles of the SEC and the CFTC, as well as the types of digital assets they will oversee [6][8]. Focus on Fraud Prevention - The SEC under Atkins intends to prioritize serious fraud cases and bad actors in the crypto space, moving away from targeting firms for technical violations [3][7].