The new Chairman of the United States Securities and Exchange Commission (SEC), Paul Atkins, has expressed his support for the direct custody of cryptocurrency assets. Upon recently assuming his role, Atkins spoke at the Decentralized Finance Round Table Meeting organized by the Commission’s Crypto Task Force. In his speech, Atkins emphasized that the ability to hold one’s assets in personal crypto wallets is a fundamental feature of blockchain technology.
DeFi Statements
Atkins highlighted that the right to store one’s crypto assets in a decentralized wallet is an essential component of private ownership protection in the US. He explained that using personal crypto wallets empowers individuals to conduct transactions without intermediary institutions, fostering innovation in the process. Atkins also noted the importance of reducing unnecessary transaction costs associated with intermediaries and ensuring participants are not harmed in on-chain activities like staking.
The newly appointed SEC Chairman criticized regulations from the previous chairman’s tenure for hindering the development of crypto wallet technology. He argued that developers of such technologies should not be accused of intermediary activities because they publish software code.
Good Riddance, Gensler!
Atkins’ statements sharply contrast with the approach of former SEC Chairman Gary Gensler. During Gensler’s tenure, the SEC imposed severe sanctions on several prominent firms in the crypto asset sector. Lawsuits were filed against companies like Binance, Kraken, Coinbase, Ripple 
$1, Uniswap Labs, and Consensys, leading to contentious legal processes. However, all these cases were closed or set to be closed after Gensler’s departure in January.
Atkins voiced concerns that the previous approach stifled innovation. He pointed out that unfounded criminal sanctions on software developers had negative implications for the industry, a sentiment echoed by both industry representatives and some legal experts. The SEC now has a chairman who understands the sector, rendering Gensler’s departure welcome.
Chairman Atkins’ Views
Speaking at the round table meeting, SEC Chairman Paul Atkins stated, “The right to store personal property in one’s possession should not disappear in the internet era. I support providing more flexibility for market participants to hold their crypto assets directly, free from unnecessary intermediation costs, and to conduct on-chain transactions more freely.”
Atkins further explained that blockchain and decentralized finance technologies contribute to the financial system’s transparency and lower operational costs by allowing users to transact directly. He strongly advocated against subjecting developers to federal securities laws merely due to the software code they release.
He also criticized the irrationality of holding software developers liable for end users’ actions, similar to automation technologies.
The regulation of digital assets and the protection of personal ownership rights continue to be prominent issues for US financial regulatory authorities. Atkins’ statements may herald a paradigm shift in the crypto ecosystem. The inclination to support more flexible custody rights could influence the shaping of new regulations in the upcoming period.
