The U.S. Securities and Exchange Commission (SEC) has announced a change in its approach to regulating the financial market. The new SEC Chair, Paul Atkins, stated that the agency will no longer impose harsh penalties on companies for technical violations of rules, focusing instead on transparency and predictability in regulation.
This is reported by Finway
SEC Changes Policy Under Paul Atkins
Paul Atkins, who took over as SEC Chair in late April 2025, is known for his pro-cryptocurrency stance and his commitment to establishing clear and understandable rules for market participants. In an interview with the Financial Times, he explained that the regulator will not penalize companies for minor technical errors but will concentrate on tackling genuine lawbreakers.
“You can’t just suddenly show up, kick down their door, and say: ‘We caught you, you’re doing something wrong, and this is a technical violation.’”
Atkins emphasized that the new SEC policy aims to change the perception of the regulator among market participants and the public. According to him, the agency must adhere to clear legal procedures, ensure that companies are informed about requirements, and operate based on the principle of the rule of law.
Criticism of Previous Leadership and New SEC Initiatives
Paul Atkins criticized the approach of his predecessor, Gary Gensler, noting that in recent years the SEC often did not rely on precedents or predictability, instead imposing excessive penalties and fines on brokers and dealers. He stressed that such practices deprived companies of the opportunity to correct mistakes and did not contribute to market development.
Atkins announced his intention to streamline the accounting system and create a transparent regulatory framework for the market of tokenized stocks. He also emphasized that he does not support the idea of classifying most crypto assets as securities, with a primary focus on developing clear and understandable standards for the crypto space.
It is worth noting that the SEC previously launched the Project Crypto initiative aimed at reforming the digital asset market in the U.S. and implementing clear rules for industry participants.