The U.S. Securities and Exchange Commission (SEC) appears to be making a radical shift in its stance toward crypto. In a sharp break from the Gensler-era crackdown, newly appointed SEC Chair Paul Atkins is signaling a more crypto-friendly regulatory future.
From Crackdown to Collaboration
Two weeks into his role, Atkins held a high-profile roundtable with DeFi leaders and crypto policymakers titled “DeFi and the American Spirit.” The message? Self-custody and decentralized finance aren’t threats—they're fundamental American values.
The SEC, under previous leadership, had aggressively pursued lawsuits against crypto firms and labeled DeFi software developers as “brokers.” Atkins, by contrast, argued that such developers were wrongly targeted and that regulation must begin with Congress—not the courtroom.
“We need to give market participants more freedom to manage their crypto, especially when intermediaries impose high fees or block staking,” Atkins stated.
“Labeling developers as brokers was misguided. This technology deserves clarity, not litigation.”
Crypto Industry Responds
The roundtable marked the fifth official meeting of the SEC’s crypto task force in 2025, a sign that Atkins is making crypto a policy priority. Topics previously discussed include token custody, digital securities, and the legal status of staking.
Commissioner Caroline Crenshaw acknowledged the complexity of the situation:
“We thought clarity would come quickly. But it turns out, with so much at stake, there are no easy answers. I’d rather get it right than rush.”
SEC Drops Coinbase and Ripple Lawsuits
This policy pivot comes after years of regulatory hostility, culminating in high-profile legal battles with Coinbase and Ripple. In February 2025, the SEC dropped its lawsuit against Coinbase after a two-year fight. Ripple’s case—once considered the agency’s flagship enforcement action—was quietly dismissed this January.
The timing isn’t accidental. Analysts tie the SEC’s new direction to the inauguration of President Donald Trump, who returned to the White House in January 2025. Under Trump, crypto-skeptical agencies have either scaled down their crypto divisions or undergone major leadership changes.
With Atkins at the helm and Gensler out, the SEC is clearly signaling a softer, more collaborative regulatory approach.
This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.
— Brad Garlinghouse (@bgarlinghouse) March 19, 2025
The future is bright. Let's build. pic.twitter.com/7WsD0C92Cm
Final Thoughts
The SEC’s new tone under Paul Atkins represents a major shift: from enforcement-heavy hostility to cautious optimism and open dialogue. While it’s too early to call it a regulatory revolution, the crypto market may finally be getting what it has long demanded—clarity, consistency, and a seat at the table.