Paul Atkins, nominated for the chairmanship of the U.S. Securities and Exchange Commission (SEC), announced that regulatory uncertainties would come to an end, and the cryptocurrency sector would receive clearer, workable rules.
Speaking during his confirmation hearing before the U.S. Senate Banking Committee on March 27, Atkins emphasized that cryptocurrencies would be a primary focus for 2025. His comments received positive reactions from sector representatives, including Coinbase‘s General Counsel Paul Grewal.
A New Era for Cryptocurrency Regulation
Atkins’ nomination has revived hopes regarding the long-standing regulatory chaos in the cryptocurrency sector. In his statements during the hearing, he expressed his goal to make the SEC’s operations more transparent, participatory, and dialogic with the industry. He highlighted that a more constructive approach would replace previous rigid stances, ensuring that the voices of sector representatives and users would be heard.
Atkins identified cryptocurrency regulations as one of this year’s most critical agenda items, stressing that clearer rules would pave the way for innovation in the U.S. He mentioned the importance of protecting investors while also aiming to foster the emergence of new markets, noting the SEC’s responsibility to strengthen the U.S. leadership in the global financial arena.
SEC, Cryptocurrencies, and Coinbase
According to Grewal, Atkins also opposed applications referred to as “debanking.” He argued that these practices are undemocratic and advocated for a more inclusive regulatory understanding for individuals excluded from financial services. Grewal notably highlighted Atkins’ statement that “it is time for the SEC to return to its fundamental principles.”
South Carolina Withdraws Coinbase Lawsuit
On the same day as the SEC nomination hearing, another significant development occurred for Coinbase. According to Grewal’s social media post, the state of South Carolina withdrew its lawsuit against Coinbase’s staking services. This move follows a similar decision made by the state of Vermont.
It is estimated that the lawsuit deprived state users of approximately $2 million in staking rewards. Grewal described South Carolina’s action as “an important stance for justice,” announcing that staking services would be resumed. Following this development, attention is now directed to other states that still prohibit staking services.
It has become increasingly evident that the estimated 52 million cryptocurrency owners in the U.S. need reasonable consumer protection and clear regulations. Grewal argued that this number should not be underestimated and that regulations concerning the sector should progress in a consistent framework rather than a capricious manner.