In remarks made on December 4, US Securities and Exchange Commission (SEC) Chair Paul Atkins expressed an optimistic outlook for the cryptocurrency industry. Atkins emphasized the SEC’s intent to modernize its rules to facilitate an on-chain market environment, leveraging distributed ledger technology and the tokenization of financial assets.

SEC Chair Advocates For Crypto Tokenization

Atkins highlighted the transformative potential of these technologies for the capital markets. He stressed that enhancing these markets is essential for US firms and investors to maintain their leadership on a global scale. 

The chair underscored that the advancements in blockchain technology could streamline not only trading processes but also the entire issuer-investor relationship, which would enable a more efficient and transparent financial ecosystem.

Tokenization, according to Atkins, goes beyond merely changing the mechanics of trading. He pointed out that it can foster direct connections for various important functions such as proxy voting, dividend payments, and shareholder communications, all while reducing the reliance on multiple intermediaries. 

In his address, Atkins acknowledged several innovative models that deserve consideration. He noted that some companies are directly issuing equity on public distributed ledgers in the form of programmable assets. 

These assets can integrate compliance features, voting rights, and governance capabilities, allowing investors to hold securities in a digital format that promotes transparency and reduces the number of intermediaries involved.

Additionally, he mentioned that third parties are engaging in the tokenization of equities by generating on-chain security entitlements that represent ownership stakes in traditional equities. 

The emergence of synthetic exposures—tokenized products designed to reflect the performance of public equities—was also highlighted. While many of these offerings are currently being developed offshore, they showcase the international interest in US market exposure supported by distributed ledger technology.

Atkins Critiques Past SEC Strategies

However, Atkins cautioned that transitioning to on-chain capital markets entails more than just issuance. He stated that it is essential to address various stages of the securities transaction lifecycle effectively. 

For instance, if tokenized shares cannot be traded competitively in liquid on-chain environments, they risk becoming little more than conceptual assets without practical utility. 

The chair also criticized the previous SEC’s approach toward the crypto industry under the agency’s former chair Gary Gensler, which attempted to adapt to on-chain markets through an expansive redefinition of “exchange.” 

This earlier strategy enforced a broad regulatory framework that ultimately created uncertainty and stifled innovation, Atkins stated. He said that it is vital to avoid repeating such mistakes in order to stimulate innovation, investment, and job creation in the United States.

To foster a conducive environment for growth, Atkins called for compliant pathways that can enable market participants to capitalize on the unique benefits of new technologies like crypto. 

In light of this conviction, he has instructed SEC staff to explore recommendations for utilizing the agency’s exemptive authorities, permitting on-chain innovations while the Commission works toward developing long-term, effective crypto regulatory frameworks.

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Throughout the year, the crypto industry has undergone significant regulatory changes influenced by President Trump’s new policies, alongside a coalition of senators advocating for the adoption and growth of digital assets. 

However, tensions escalated when a group of Democratic senators began to challenge Trump’s policies, claiming that they reflect a significant conflict of interest, but this time, particularly concerning David Sacks, the White House’s AI and Crypto Czar.

White House Crypto Czar Denies Conflicts Of Interest

In a recent statement on social media site X (formerly Twitter), Sacks shared that five months ago, several reporters from The New York Times were assigned to investigate supposed conflicts of interest linked to his role. 

He described how the investigation persisted through numerous “fact checks,” during which they scrutinized various accusations against him. Despite presenting thorough rebuttals, Sacks noted that the published article only included fragments of their responses, while the foundation of the accusations remained largely speculative.

According to the White House’s Crypto Czar, the allegations ranged from a “fabricated dinner” with a notable tech CEO to unfounded claims of promising access to the President and exerting influence over defense contracts. He argued that each time an accusation was disproven, the Times simply shifted to another claim. 

Sacks expressed frustration that, in their pursuit of a “sensational story,” The New York Times overlooked the fact that he has no genuine conflicts of interest to uncover. He described the final article as a “nothing burger,” asserting that it merely pieced together anecdotes that do not substantiate its headline. 

To counter what he deemed a misrepresentation of the facts, Sacks ultimately hired a law firm specializing in defamation law, to assist in addressing these allegations. 

New Bills Could Dismantle Century-Old Banking Practices

Market expert Jack Sage later weighed in on these developments via social media, asserting that US bankers, including JPMorgan, are waging “TOTAL WAR” on Bitcoin. 

Sage pointed out several targets of this new onslaught, including Strategy (previously MicroStrategy), along with key figures such as Strike CEO Jack Mallers, and stablecoin issuer Tether (USDT). 

He indicated that David Sacks is now in the line of fire, characterizing this as a coordinated attack aimed at diminishing a crypto-friendly influence within Trump’s administration.

Sage suggested that the Trump administration seeks to leverage Bitcoin and stablecoins to challenge the banks’ “longstanding monopoly” over the money supply. 

He pointed to potential legislative initiatives such as the GENIUS Act, the upcoming CLARITY Act, and possibly the BITCOIN Act as transformative measures that could shift money creation away from traditional banks and the Federal Reserve (Fed).

These proposed bills, according to Sage, could dismantle the fractional reserve banking system that has existed for over a century. The response from traditional bankers and globalists, Sage noted, has been one of desperation as they confront a reality where they may lose control over monetary systems for the first time.

Featured image from DALL-E, chart from TradingView.com