Atkins: SEC Will Make U.S. the Crypto Capital

Paul Atkins, the new SEC chair, told an industry conference Monday that the Trump administration wants the U.S. to become the world's “crypto capital.” The agency, he said, is dropping the view that digital assets are inherently “evil” and will instead separate illicit actors from legitimate technology.

“We will no longer regulate through enforcement,” Atkins said in prepared remarks. “The prior approach punished innovation.” He promised clearer rules for token issuers, exchanges, and custodians.

The shift was visible the same day. Nexo, a crypto lender that left the U.S. in 2022 after a crackdown, announced it would re-enter the market. The company settled with the SEC and state regulators last year, paying $45 million without admitting or denying the charges. Nexo co-founder Antoni Trenchev said the new regulatory direction made re-entry viable.

Atkins did not give a specific timeline for new rules. He said the SEC would work with the Commodity Futures Trading Commission and state regulators to create a single framework. The goal is to end the jurisdictional fight that has left many tokens uncertain about whether they are securities or commodities.

“We need a federal definition of a digital asset security that is workable,” Atkins said. He pointed to bills in Congress that would give the CFTC primary oversight of crypto spot markets. The SEC, he argued, should focus on fraud and disclosure, not on whether a token is a security.

The change is sharp. Gary Gensler, the previous chair, argued that most tokens were securities and that exchanges had to register with the SEC. That stance led to lawsuits against Coinbase, Binance, and Kraken. Atkins did not say whether those cases would be dropped or settled. He said the SEC would review each matter on its facts.

Trenchev, speaking after Atkins, said Nexo's return was a direct response to the regulatory shift. “We left because we could not get clear answers on what was allowed,” he said. “Now the SEC says it will provide them.” Nexo plans to offer its lending and staking products in the U.S. again, pending state licenses.

Other firms are watching. Several crypto companies that moved offshore during the Gensler era have said they would consider returning if the SEC adopts clear rules. Coinbase, which never left, has lobbied for legislation. Its CEO, Brian Armstrong, praised Atkins' speech on social media.

Atkins also addressed stablecoins. He said the SEC would treat fully backed stablecoins as payment instruments, not securities, provided they are not used in yield products. That aligns with the bipartisan stablecoin bill advancing in the House.

The conference ended without a formal rule proposal. Atkins said the SEC would issue a request for comments in the coming months. The agency's five-member commission currently has three Republicans and two Democrats, giving Atkins a working majority.