SEC Chairman Paul Atkins blasts former Gensler: "Stifling Innovation" — The U.S. Missed Major Opportunities in Cryptocurrency
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins sharply criticized former Chairman Gary Gensler’s tenure on Friday at a University of Texas event, stating that Gensler’s SEC “never tried to adapt to innovation” and directly saying the U.S. has “missed significant opportunities” in the crypto space, now working hard to catch up.
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During a rare fireside chat at the University of Texas on Friday, SEC Chairman Paul Atkins issued his most direct critique of his predecessor Gary Gensler’s policy legacy. He said that Gensler’s SEC “never attempted to adapt to innovation,” replacing clear rules with “enforcement-first” approaches, which has caused the U.S. to fall seriously behind in the global crypto regulation race.
Atkins characterized Gensler’s approach as a “big missed opportunity,” noting that regulatory uncertainty during Gensler’s tenure not only scared off compliant companies but also pushed much innovation overseas. He emphasized that since the Trump administration took office, the SEC has completely reversed course from hostility to friendliness.
Three Major Policy Shifts
Paul Atkins detailed specific changes under the new leadership at the SEC since he took office:
- Withdrawal of Enforcement Cases: The SEC has withdrawn multiple lawsuits and investigations against major crypto firms, including high-profile enforcement actions against exchanges and token issuers during Gensler’s era.
- Crypto Task Force: Led by Commissioner Hester Peirce, this task force has been operating for months, continuously issuing exemptions for various crypto assets and engaging in roundtable discussions with industry players.
- Project Crypto: Launched last year, this “chain reform plan” aims to fundamentally rewrite the application logic of U.S. securities law in the crypto era, enabling compliant migration of financial markets onto the blockchain.
WisdomTree Tokenized Fund Approved
Paul Atkins highlighted the transformative potential of distributed ledger technology (DLT) in payments, clearing, and settlement, noting that settlement times have been reduced from five days to one, with a goal of achieving T+0 (instant settlement).
As a concrete example, he revealed that the SEC has approved WisdomTree’s Treasury Money Market Digital Fund (WTGXX) to enable 7-day, 24-hour real-time settlement in tokenized form. The fund is backed by U.S. Treasuries, manages about $730 million, offers an annual yield of approximately 3.5%, and has been issued on nine blockchains including Ethereum and Solana. Shares are pegged to $1, functioning like “tradeable digital cash.”
Atkins also previewed that the SEC will push for approval of more innovative products like tokenized bank deposits, and he said, “You ain’t seen nothing yet,” hinting at upcoming broader regulatory relaxations.
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