SEC Will Notify Crypto Firms Before Enforcement Actions, Says SEC Chair Atkins

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has announced a policy shift, stating the agency will begin issuing advance notices to crypto firms before pursuing enforcement actions, moving away from its long-criticized regulation-by-enforcement approach.

Key points:

• SEC Chair Paul Atkins announced the agency will issue advance notices to crypto firms about potential violations before pursuing enforcement actions.
• The shift comes alongside the SEC’s new Crypto Task Force, led by Commissioner Hester Peirce, which will host a major hearing on financial privacy and surveillance in October.
• The policy change emphasizes the SEC’s move toward greater transparency and dialogue with the blockchain industry, aiming to balance innovation with investor protection.

According to a report by the Financial Times, Atkins revealed that the SEC intends to alert firms of potential technical violations through formal notices rather than moving directly to enforcement. He also voiced criticism of the regulator’s past reliance on aggressive enforcement when dealing with the blockchain industry.

Atkins acknowledged the wave of criticism directed at the SEC in recent years, noting that the agency’s actions lacked a clear foundation in precedent and offered little predictability for the industry.

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The announcement that the SEC will begin issuing notices to crypto firms coincides with news that its dedicated Crypto Task Force is preparing to hold a major hearing on financial privacy and surveillance this October.

Building on the Spring Sprint Toward Crypto Clarity roundtables, the President’s Executive Order on Digital Assets, and the President’s Working Group report, Commissioner Hester Peirce has tasked the SEC’s Crypto Task Force with advancing U.S. leadership in digital assets and fintech while safeguarding economic freedom.

As part of this effort, the upcoming Financial Surveillance and Privacy roundtable will convene leading technologists and policy experts to explore innovations in privacy protection and examine key regulatory issues tied to financial surveillance.

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The SEC established the Crypto Task Force earlier this year to address ongoing concerns from the digital assets industry, appointing Commissioner Peirce to lead the initiative.

The SEC’s evolving stance reflects a broader trend among regulators wrestling with how to balance innovation with investor protection. By adopting measures that emphasize dialogue and transparency, the agency is signaling a willingness to rethink its role in the fast-moving digital asset sector. 

Whether these shifts will restore trust and foster a healthier relationship with the industry remains to be seen, but the change marks an important moment for U.S. crypto policy. The coming months, and the Task Force’s upcoming discussions, may prove pivotal in shaping the regulatory environment that defines the next stage of blockchain adoption.

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MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.