Zcash (zec) 
“`html
SEC Chairman Paul Atkins recently criticized the agency’s previous approach to cryptocurrency regulation, labeling it as ineffective and harmful to market trust. In a speech published on the SEC’s official platform, Atkins outlined the shortcomings of the Commission’s earlier strategies, which involved initially ignoring the crypto space and later relying heavily on enforcement actions. This approach, he argued, failed to provide necessary clarity and deterred legitimate participants from engaging in the market.
“It seemed like a catch-22,” Atkins noted. “The message was, ‘You go figure it out.’ That environment did not create trust.”
Improving Transparency and Trust
To address these issues, Atkins directed the SEC’s Division of Corporation Finance to engage more openly with industry stakeholders. While formal rulemaking for cryptocurrencies is still in progress, Atkins emphasized that interim guidance from SEC staff would continue to assist firms in navigating regulatory uncertainties. This move aims to rebuild trust and foster a more cooperative relationship between the SEC and market participants.
FinHub’s New Role
Atkins also proposed integrating FinHub, the SEC’s Strategic Hub for Innovation and Financial Technology, into the agency’s core operations. Previously seen by many as an enforcement-focused entity, FinHub’s new role will prioritize supporting innovation and adapting regulatory frameworks to accommodate emerging technologies.
This shift in FinHub’s responsibilities reflects the SEC’s broader commitment to modernizing its oversight without stifling technological progress. By fostering collaboration with the crypto and fintech industries, the SEC hopes to create a more balanced approach to regulation.
Support for Custody and Trading Integration
In a noteworthy policy shift, Atkins expressed support for allowing registered firms to custody and trade both securities and non-securities under a single entity. He described this as an “initial step” toward developing a comprehensive financial ecosystem, where investors could seamlessly access both traditional and digital financial products through a unified platform.
This vision aligns with the concept of a “super-app,” which could provide users with a streamlined experience for managing diverse assets, including stocks, cryptocurrencies, and other financial instruments.
Balancing Innovation and Oversight
Atkins’ speech signals a strategic pivot for the SEC, as the agency seeks to bring greater clarity and consistency to cryptocurrency regulation. However, he stressed the importance of remaining within the SEC’s statutory boundaries while leveraging its discretion to modernize oversight practices.
“I believe we can foster innovation while remaining true to our mission,” Atkins stated.
As the cryptocurrency industry continues to evolve, the SEC’s willingness to adapt its regulatory approach could play a crucial role in shaping the future of digital assets and fostering a more inclusive financial ecosystem.
“`
