Paul Atkins details advances in the regulation of crypto assets: “Project Crypto” as a pillar of legal clarity

Paul Atkins highlighted regulatory advances in crypto and announced reforms regarding the power of voting advisors.

In a recent interview, Atkins addressed two crucial issues that have generated much anticipation and uncertainty. First, the regulation of digital assets, an area where a lack of clarity has been the norm for years. Second, the significant increase in the power of institutional proxy advisors, key players in corporate decisions that affect both investors and the market structure. With a direct yet conciliatory approach, Atkins stated that “The era of legal ambiguity in crypto is coming to an end”, marking a decisive moment for the industry.

Atkins also stressed the urgent need to review and modernize the rules governing corporate governance, especially in an environment where internal business dynamics are undergoing profound transformation. This update, he explained, aims to ensure that decision-making processes are more transparent and effective, which is fundamental to maintaining confidence in the financial system.

Thus, rather than presenting regulation as a hindrance, the SEC chairman suggests viewing it as a tool that can strengthen market integrity and foster an environment where technological innovation and investor protection coexist in a balanced way. His perspective proposes a path in which the evolution of the financial sector is based on clear rules and mutual trust among stakeholders.

The SEC opened the door to more flexible regulation

Atkins celebrated the progress of Project Crypto, the regulatory framework the SEC introduced a few months ago to classify digital assets into four functional groups: network tokens, collectibles, digital tools, and tokenized securities. This division aims to differentiate projects still tied to centralized structures, which are treated as securities, from those that have evolved into decentralized networks where there is no single point of control.

In fact, in the interview, Atkins explained that “A token may be born as a value, but it will not necessarily remain so.”With this idea, it acknowledges that digital assets can change over time and opens the door for some tokens to fall under the supervision of other entities, such as the CFTC or state regulators, depending on their function and level of decentralization.

In practice, companies like Shyft Network have valued this initiative for replacing a regulatory model based on complex legal interpretations with a clearer structure aligned with current technological characteristics. According to experts, the changes implemented at the SEC under Atkins' chairmanship are opening the door for many crypto platforms to apply for specific licenses to operate without fear of repercussions for past actions.

The call Project Crypto It seeks to ease the strict rules that for years have hindered the growth and expansion of crypto startups in the United States.

By clarifying what type of asset each token represents, the SEC seeks to end the uncertainty that for years generated a restrictive environment, caused by the complex application of the Howey test, thus establishing a more stable environment conducive to innovation in a market that continues to change rapidly.

The SEC and digital financial products

Atkins emphasized that the regulatory body will continue to strictly supervise tokenized financial products. He clarified that Technological innovation does not mean that compliance can be avoided. of current legal regulations. In his message, he emphasized that any case of fraud will be investigated and punished with the same severity, regardless of whether the financial asset is in digital format.

At the time of the interview, the SEC was operating under a temporary framework due to the partial government shutdown that lasted 43 consecutive days. However, Atkins expressed confidence in the sector's future. He noted that the implementation of the regulatory project known as Project Crypto will be key to restoring stability to the crypto market. 

In essence, this new regulatory framework will establish more structured and secure access to digital assets. According to their vision, this initiative will not only protect investors but also offer developers a clearer and more reliable environment where the rules are transparently defined. This fosters a more stable ecosystem with less uncertainty, promoting both participation and growth in the sector.