The United States is years behind its rivals when it comes to regulating digital assets, according to SEC Chairman Paul Atkins, who has pledged to make catching up the agency’s top priority.
Speaking at DC Fintech Week in Washington, Atkins admitted that the US was “probably ten years behind” on crypto rules and promised a radical overhaul of how the Securities and Exchange Commission handles innovation.
“The crypto side is our first job,” he said, pledging to transform the SEC into what he half-jokingly called the “Securities and Innovation Commission.”
Bringing innovators home
Atkins said the goal was to attract blockchain pioneers who fled abroad due to confusing or hostile regulations. The SEC, he said, is now developing a clear framework that protects investors while encouraging invention.
The agency plans to launch an “innovation exemption” allowing startups to test blockchain projects under lighter rules before being fully compliant. The president insisted that the SEC already has the legal authority to grant such exemptions and will begin using it “more boldly.”
“We can be forward-thinking by welcoming new ideas,” Atkins told delegates, adding that the move could restore U.S. leadership in digital finance.
The surge of superapps
Atkins also highlighted the global race to create “superapps,” platforms that combine payments, trading and shopping in a single interface. Asian tech giants like WeChat and Grab already dominate this market, but the United States has yet to produce its own version.
He argued that closer coordination among U.S. regulators could be a game-changer. “It’s smart to think of regulatory coordination as an application in itself,” he said. The SEC is now working with the Commodity Futures Trading Commission (CFTC) and the Treasury Department to align policies and cut red tape.
Atkins cited progress in Congress, including the GENIUS Act, which formally recognizes stablecoins as legitimate financial instruments. Clearer and unified regulation would strengthen both business innovation and investor confidence, he said.
Updating outdated rules
Much of the challenge, Atkins admitted, lies in the era of U.S. securities laws — the Securities Act of 1933 and the Exchange Act of 1934 — written long before digital assets existed.
At the heart of the debate is the 1946 Howey test, which defines what constitutes safety. While it is suitable for traditional stocks and bonds, critics say it is no longer suitable for decentralized blockchain tokens.
“Tokenization is not about having thousands of coins,” Atkins explained. “It’s about putting real-world assets on-chain. This is where the real potential lies.
He called tokenization a revolutionary one that could reshape everything from real estate to capital markets, but only if regulators update their thinking to adapt to 21st century technology.
Rebuilding Trust with Crypto Companies
Atkins’ remarks mark a notable shift for a regulator long accused of stifling innovation. After years of pursuing crypto giants like Ripple and Coinbase, the SEC now appears ready to reset its relationship with the industry.
The proposed innovation exemption could be the first step towards a balanced model, encouraging experimentation without sacrificing investor protection.
“For too long, innovators have looked to Europe and Asia for clarity,” Atkins said. “It’s time for them to come home.”
The crypto world is watching closely. If the SEC keeps its promise, analysts say, the United States could reclaim its place at the forefront of blockchain innovation and help shape the next era of global finance.
Originally published on IBTimes UK
