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Paul Atkins Says U.S. SEC Is Shifting Away From "Regulation by Enforcement"

Paul Atkins Says U.S. SEC Is Shifting Away From "Regulation by Enforcement"

According to Paul Atkins, the SEC is accelerating a clearer digital asset regulatory foundation through coordination with Congress and other regulators and an A-C-T strategy focused on modernizing and clarifying rules.

Fact Check
The official SEC source "Prepared Remarks Before SEC Speaks" is the strongest evidence. Its search snippet explicitly contains the three components of the strategy: advancing, clarifying, and transforming the SEC's rulebook and regulatory frameworks. That strongly supports the claim that Paul Atkins described an ACT approach. The supplied social posts, including "x post 2046249189953208520" and "x post 2046254169078583340," consistently state that Atkins said the SEC is moving away from "regulation by enforcement" and adopting ACT = Advance, Clarify, Transform. Independent legal commentary in "SEC Speaks 2026: SEC Leadership Signals a Lighter Regulatory Touch but Offers Few Enforcement Details" also aligns with this characterization. Confidence is medium rather than high because the tool limit prevented fetching the full SEC speech page text directly, so the primary-source support comes from search-result snippet text rather than full-page extraction.
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Summary

The SEC under Paul Atkins has continued shifting its crypto policy during his first year by withdrawing multiple lawsuits against crypto companies, approving several crypto ETFs, signing a digital asset regulatory coordination memorandum with the CFTC, and issuing guidance stating that most cryptocurrencies are not securities under federal law. A new update adds that Atkins, speaking at the Washington Economic Club, said the SEC is accelerating a clear regulatory foundation for digital assets, coordinating with other regulators and Congress, and pursuing an A-C-T strategy to modernize, clarify, and transform rules. Earlier updates also said Atkins unveiled an innovation exemption, outlined five-bucket token rules, and highlighted a CFTC pact intended to open a regulated path for tokenized securities to operate on-chain. The developments further reinforce the agency’s move away from a regulation-by-enforcement model, though broader questions about crypto jurisdiction and legislative market structure remain unresolved.

Terms & Concepts
  • Regulation by enforcement: A regulatory approach in which authorities shape market behavior mainly through enforcement actions instead of detailed rulemaking.
  • CFTC: The U.S. Commodity Futures Trading Commission, a federal regulator that oversees derivatives markets and shares interest in digital asset oversight.
  • tokenized securities: Traditional securities represented on a blockchain, allowing regulated financial assets to be issued, traded, or managed on-chain.