Paul Atkins SEC Chairman "Virtual Asset Innovation Suppressed for Years… New Regulations Needed"

Paul Atkins, a commissioner of the U.S. Securities and Exchange Commission (SEC), emphasized that the innovation in the virtual asset (cryptocurrency) industry has been suppressed for years, stating that "change is urgently needed."

According to CNBC on the 25th (local time), Commissioner Atkins said at the SEC's first virtual asset roundtable meeting held after his inauguration, "The current (virtual asset) market situation shows that changes to the current regulatory framework are needed," he said.

Commissioner Atkins stated, "We are ready to broadly review regulations related to virtual assets," and "It would be better if there is additional legislation from Congress, but there is enough room to move flexibly within the current regulations."

The roundtable mainly discussed the issue of virtual asset custody. Hester Peirce, an SEC commissioner who attended the event, said, "There needs to be regulatory differentiation for some virtual assets held by qualified custodians," but "in other cases, 'self-custody' may be safer."

The SEC is reviewing the proposed amendments to the custody regulations that were proposed during the tenure of former SEC Chairman Gary Gensler. The proposed regulations at the time were criticized for being virtually inapplicable to blockchain-based assets, and discussions were halted. This roundtable is interpreted as a signal for renewed discussions on related regulations.

Meanwhile, executives from major virtual asset companies such as Anchorage Digital Bank, Fidelity Digital Assets, Kraken, BitGo, Exodus, Fireblocks, and Copper Technologies attended the event and expressed their views.