Key Takeaways

• Paul Atkins is expected to implement a lighter regulatory approach as SEC Chairman.
• David Sacks’ role as Crypto Czar could position the US as a leader in global crypto policy.

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With President-elect Donald Trump naming Paul Atkins as SEC Chair and venture capitalist David Sacks as the first-ever White House Crypto Czar, the crypto industry is poised for a seismic shift.These appointments mark a significant departure from the SEC’s enforcement-heavy stance under Gary Gensler and signal the Trump administration’s intent to create a more industry-friendly regulatory environment.Paul Atkins, a former SEC commissioner, is known for his pro-innovation stance and preference for self-regulation over heavy-handed enforcement.His appointment has been met with optimism in the crypto sector, which frequently clashed with Gensler’s SEC.Under Atkins’ leadership, a lighter regulatory touch is expected, with the potential shift of digital asset oversight to the CFTC, an agency seen as more crypto-friendly.Meanwhile, David Sacks, a co-founder of Craft Ventures and former PayPal executive, brings a business-oriented approach to the newly created role of Crypto Czar.Tasked with centralizing crypto policy and fostering collaboration across federal agencies, Sacks’ appointment could pave the way for the US to emerge as a global leader in crypto governance.ETF approvals and enforcement actionsUnder Atkins’ leadership, the SEC’s stance on ETF approvals is expected to become more favorable.Michele Neitz, professor and founding director of the Center for Law, Tech, and Social Good at the University of San Francisco, believes approvals for ETFs like Solana’s will likely be expedited.

“An Atkins-led SEC will probably move more quickly on ETF approvals, focusing on investor protection and disclosure rather than the merit-neutral language we saw under Gensler,” Neitz said.

Additionally, Atkins is expected to shift the SEC’s approach to enforcement. Neitz predicts the agency may drop its appeal in the Ripple case and reconsider other high-profile enforcement actions, such as those against Coinbase.The Crypto CzarCharles Belle, a professor at the University of San Francisco, notes that the Crypto Czar role could position the US as a leader in global crypto governance.

“The Czar’s flexibility and direct contact with the Oval Office could drive harmonization of regulations across federal agencies and set global standards,” Belle said.

However, he cautions that the role’s lack of institutional resources could create conflicts with other government departments and lead to inconsistent policy implementation.Balancing innovation with investor protectionDespite the optimism surrounding these appointments, Neitz underscores the importance of maintaining investor protections.

“While a new SEC chair will likely take a softer stance on crypto companies, it’s crucial to ensure that public protection remains a priority. Otherwise, we risk widespread consumer fraud and a backlash against lighter regulation,” she said.

The Financial Innovation and Technology Act, pending before Congress, could provide much-needed clarity by establishing federal definitions for digital assets.According to Belle, this legislation could create a unified regulatory framework that promotes innovation while safeguarding consumers.A new era for crypto?The appointments of Atkins and Sacks signal a potential realignment of US crypto policy, shifting from punitive enforcement to collaborative innovation.As the Trump administration takes shape, the crypto industry awaits a clearer regulatory framework that could finally unlock its full potential.Belle emphasized that federal changes, including the introduction of a new Crypto Czar and new SEC leadership, should clarify regulations and provide consistency, enabling startups to thrive.However, he cautioned that while federal baselines are necessary, lawmakers must avoid stifling state-led innovation.State-led efforts have been vital for developing pro-crypto policies in places like Wyoming and consumer protection frameworks in California.

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