US crypto regulation sees shift 1 year into Atkins' SEC term

The U.S. Securities and Exchange Commission has materially shifted its crypto regulatory stance in the first year under Chair Paul Atkins, moving to a framework of administrative guidance and case-by-case handling while enforcement actions fell 22% in fiscal 2025.

"We need to have financial regulation that is open to innovators because innovation is what makes the financial markets resilient," Commissioner Hester Peirce, who leads the agency's rebranded Project Crypto task force, said on the SEC's new Material Matters podcast.

The pivot includes the dismissal of cases against firms like Ripple and Coinbase, guidance that “most crypto assets” are not securities, and a joint classification with the CFTC of XRP as a digital commodity. Monetary relief from enforcement dropped to $2.7 billion from $8.2 billion, with the agency noting prior crypto enforcement “led to misguided expectations.”

This regulatory thaw has opened a window for legislation like the CLARITY Act, which industry experts say is critical for attracting foundational crypto infrastructure to the U.S. before it gets built in jurisdictions like the UAE or the EU under MiCA over the next 12 to 18 months.

"Rules come first. You can't build infrastructure on ambiguity," said Sergey Kravtsov, CEO of stablecoin protocol Papaya Finance, who is relocating his firm to the U.S. based on the new posture. Male Zane, a regional manager at exchange CoinEx, added the shift signals a "gradual return of institutional capital" but cautioned the market "remains cautious due to the dependence of further steps on legislative initiatives in the US Congress."

Market Responds to Regulatory Thaw

The impact of clearer classifications is already visible. Following its formal commodity status, seven spot XRP ETFs have launched in the U.S., surpassing $1 billion in combined assets. CoinShares reported $119.6 million in weekly XRP fund inflows, representing 53% of all crypto fund flows for the week, as analysts project the XRP price could target $5 if the CLARITY Act passes the Senate.

The changing environment is influencing activity across the ecosystem. Projects like AlphaPepe are entering Binance listing discussions, citing the new SEC framework as a positive catalyst. Concurrently, some platforms are seeking regulatory certainty abroad, with crypto casino Toshi.bet securing a gaming license from Anjouan, highlighting a broader industry trend of seeking formal oversight where available.

Despite the pro-innovation rhetoric, uncertainty persists. Atkins' SEC is increasing scrutiny on specific areas like prediction markets, with one market on Predict.fun regarding a project's valuation holding steady at 94.5% "YES" despite the potential for new rules. This demonstrates that while the broad tone has softened, direct regulatory action remains a risk for specific sectors.

This article is for informational purposes only and does not constitute investment advice.