April 21, 2025, marked the official start of Paul Atkins’ tenure as Chair of the U.S. Securities and Exchange Commission (SEC). As of April 21, 2026, he has completed a full year in office. During this period, the SEC’s approach to digital asset regulation has undergone a fundamental shift—from the enforcement-centric, hardline stance of the Gensler era to a policy-driven model focused on rulemaking and inter-agency coordination.
Atkins himself has described this transformation as "a new day for the SEC." In an interview with CNBC, he stated, "We have moved away from substituting enforcement for regulation and from opaque institutional practices. The crypto sector is the best example of this change." However, this pivot did not begin with Atkins’ appointment. As early as January 2025, after Gensler’s resignation and Commissioner Mark Uyeda’s interim chairmanship, the SEC had already established a crypto working group led by Hester Peirce and, in February 2025, withdrew its civil enforcement action against Coinbase. Signals of this policy shift began to emerge as soon as the election results were announced.
What Lasting Impact Did "Enforcement-Led Regulation" Leave on the Industry During the Gensler Era?
To understand the changes under Atkins, it’s important to review the SEC’s regulatory path during Gensler’s leadership. According to Cornerstone Research, from April 2021 to December 2024, the SEC initiated 125 crypto-related enforcement actions during Gensler’s term—an 80% increase over the 70 actions taken under his predecessor, Jay Clayton, from 2017 to 2020. Total fines reached $6.05 billion, nearly four times the $1.52 billion levied during Clayton’s tenure.
The Gensler era was defined by a core philosophy of "regulation through enforcement." The SEC filed lawsuits against major crypto platforms such as Binance, Coinbase, and Kraken, alleging violations of securities laws. Critics argued that this aggressive strategy stifled domestic innovation and pushed crypto businesses offshore. Notably, 66% of enforcement actions under Gensler involved fraud allegations, compared to 54% under Clayton, indicating a shift in enforcement focus toward fraud cases during Gensler’s leadership.
From Dropping Enforcement to Admitting Misjudgment: How Has the Atkins Era Ended the Enforcement-First Model?
Within his first year, Atkins oversaw several substantive moves in SEC enforcement. The most significant change: since February 2025, the SEC has withdrawn seven crypto-related enforcement actions involving Coinbase, Binance, Kraken, Cumberland DRW, Consensys, and others. The SEC cited "insufficient basis under federal securities laws" as the reason for dropping these cases.
On April 8, 2026, the SEC released its FY2025 enforcement report, further acknowledging flaws in the Gensler-era approach. The report characterized several past crypto registration cases as "misinterpretations of federal securities law" and noted that these actions "did not provide material benefits to investors." The SEC also disclosed that, since 2022, it had initiated 95 enforcement actions related to inadequate recordkeeping by institutions, imposing $2.3 billion in penalties, and admitted that this "quantity over quality" approach reflected systemic bias.
Looking at the data, the SEC initiated 456 enforcement actions in FY2025, about a 30% decrease from 2024. Atkins stated that the agency is "repositioning" its enforcement program, shifting resources from case volume to targeting fraud and market manipulation—the behaviors that most harm investors. At the same time, the SEC has removed the dedicated crypto asset section from its FY2026 examination priorities, integrating crypto into broader risk categories.
Multiple Crypto ETFs Approved in Bulk: How Has the SEC’s Approval Logic Changed?
The SEC’s progress on crypto ETF approvals during Atkins’ first year is the most visible sign of policy change. Under Gensler, the SEC only approved spot Bitcoin and spot Ethereum ETFs, and the approval process was marked by lengthy legal battles. Under Atkins, ETF approvals have both accelerated and broadened in scope.
In September 2025, the SEC announced that general listing standards would apply to crypto ETFs, prompting asset managers to act quickly. That same month, Hashdex received SEC approval to launch a crypto index ETF including BTC, ETH, XRP, and SOL. In October, the SEC approved Canary Capital’s Litecoin ETF and Hedera ETF for trading on Nasdaq.
In March 2026, the SEC conducted a "group approval," formally approving core rule changes for spot ETFs covering 24 tokens, including XRP, Solana, and Litecoin. In April 2026, the SEC further approved the listing of "multi-crypto asset" trust ETF options on NYSE American, breaking the previous restriction that only allowed options on single crypto assets.
This shift in ETF approval logic is evident in two ways: first, the scope has expanded from single assets to index-based and multi-asset combinations; second, the pace has quickened, moving from case-by-case reviews to batch approvals. This reflects a change in the SEC’s conceptual framework for crypto assets—when most crypto assets are no longer viewed as "securities," their path into regulated traditional financial products naturally opens up.
SEC and CFTC Sign Regulatory Coordination MOU: Can Institutional Collaboration End Jurisdictional Turf Wars?
A longstanding challenge for the crypto industry has been the blurred jurisdictional lines between the SEC and the CFTC. Since Atkins took office, the two agencies have made significant strides in regulatory coordination.
On September 2, 2025, the SEC’s Division of Trading and Markets and the CFTC’s Market Oversight and Clearing Risk Division issued a joint statement launching an interagency coordination initiative, clarifying that existing laws do not prohibit registered exchanges from trading certain spot crypto asset products. Three days later, Atkins and then-acting CFTC Chair Caroline Pham jointly announced a regulatory coordination roundtable, covering topics such as 24/7 markets, event contracts, perpetual swaps, portfolio margining, innovation exemptions, and DeFi.
In January 2026, Project Crypto officially became a joint policy initiative of the SEC and CFTC, aiming to unify the federal regulatory framework for crypto asset markets. On March 17, the two agencies jointly issued a 68-page interpretive guidance, explicitly stating that "most crypto assets are not securities," marking the substantive implementation of the policy shift.
In a joint statement, Atkins and CFTC Chair Michael Selig said that interagency collaboration starts with foundational work: harmonizing definitions, coordinating oversight, and establishing interagency data-sharing mechanisms. Although joint guidance has been issued, the SEC’s crypto regulatory framework remains in a "guidance plus case-by-case" transitional phase, and the passage of a Congressional market structure bill will ultimately determine jurisdictional boundaries.
Crypto Compliance Outlook for H2 2026: Congressional Legislation Remains the Key Variable
While the SEC has made significant shifts in enforcement and product approvals, a fully institutionalized regulatory framework for crypto still requires Congressional legislation.
On the legislative front, the Senate Agriculture Committee advanced the Digital Asset Market Structure Act to committee review in February 2026 by a 12-11 vote. JPMorgan analysts noted in a February 2026 report, "Despite continued negative sentiment in the crypto market, we still believe market structure legislation could be approved by midyear, which is likely to serve as a positive catalyst for the crypto market in the second half."
On the rulemaking side, Atkins announced in December 2025 that the SEC’s innovation exemption program for crypto companies would take effect in January 2026, providing a "regulatory buffer period" for projects that meet decentralization and technical security standards. In April 2026, Atkins stated that the safe harbor proposal had been submitted to the White House Office of Information and Regulatory Affairs for review, allowing crypto projects to raise funds without immediate registration requirements.
On the stablecoin front, the GENIUS Act has entered the implementation phase. In April 2026, the Treasury and OFAC jointly issued proposed rules bringing compliant stablecoin issuers under anti-money laundering and sanctions compliance requirements. Internationally, Basel III/IV will take effect in the second half of 2026, allowing banks to allocate up to 2% of Tier 1 capital to crypto assets, further paving the way for institutional participation.
One area to watch is the rising opposition in Congress. Senator Elizabeth Warren and other Democrats have repeatedly criticized Atkins, arguing that SEC enforcement actions have fallen to a ten-year low and raising concerns about potential conflicts of interest in cases involving companies linked to Trump. Despite these controversies, the shift in U.S. crypto regulation from "enforcement-first" to "rules-driven" is now largely established, and the focus for the second half of 2026 will move from policy direction to practical implementation.
Conclusion
On the first anniversary of Paul Atkins’ appointment as SEC Chair, U.S. crypto regulation has completed a systemic shift from the "enforcement-led" model of the Gensler era to a "policy-driven" approach. This transformation is evident on three fronts: first, a restructured enforcement philosophy, with the SEC acknowledging "flaws" in past crypto enforcement actions, withdrawing seven cases, and reducing overall enforcement by about 30%; second, faster product approvals, expanding from Bitcoin and Ethereum ETFs to multi-asset ETFs covering 24 tokens and the approval of multi-crypto asset ETF options; third, deeper institutional collaboration, with the SEC and CFTC signing a regulatory coordination MOU and jointly issuing interpretive guidance clarifying that most crypto assets are not securities. Looking ahead to the second half of 2026, the outcome of Congressional review of the market structure bill will be the decisive factor in determining whether the crypto regulatory framework becomes fully institutionalized.
FAQ
Q1: Which major crypto enforcement cases did the SEC withdraw during Atkins’ tenure?
Since February 2025, the SEC has withdrawn seven crypto-related enforcement actions involving Coinbase, Binance, Kraken, Cumberland DRW, Consensys, and others. The SEC stated these cases "lacked sufficient basis under federal securities laws."
Q2: What types of crypto ETFs has the SEC approved during Atkins’ term?
The SEC has approved spot Bitcoin ETFs, spot Ethereum ETFs, Litecoin ETFs, Hedera ETFs, crypto index ETFs including BTC/ETH/XRP/SOL, and, in March 2026, approved core rule changes for spot ETFs covering 24 tokens. In April 2026, the SEC further approved multi-crypto asset ETF options trading.
Q3: What are the main points of the regulatory coordination MOU signed by the SEC and CFTC?
In September 2025, the SEC and CFTC jointly announced the launch of Project Crypto, an interagency coordination initiative clarifying that current law does not prohibit registered exchanges from trading spot crypto asset products. In January 2026, Project Crypto officially became a joint policy initiative. In March 2026, the agencies jointly issued interpretive guidance stating that "most crypto assets are not securities."
Q4: What key policy milestones should be watched in crypto compliance for the second half of 2026?
There are three main areas to watch: first, the progress of Congressional review of the market structure bill; second, the implementation of the SEC’s innovation exemption program; third, the rollout of the GENIUS stablecoin act. In addition, Basel III/IV will take effect in the second half of the year, allowing banks to allocate assets to crypto, which could drive further institutional inflows.
Q5: Is there controversy surrounding the regulatory shift under Atkins?
Yes. Democratic lawmakers have questioned the drop in SEC enforcement actions to a ten-year low. Senator Elizabeth Warren and others have challenged the accuracy of Atkins’ Congressional testimony and raised concerns about potential conflicts of interest in cases involving companies linked to Trump.
