Senators press SEC chair on crypto rules, task force and stablecoin bill

Senators at a Senate Appropriations Subcommittee hearing pressed Paul Atkins, chairman of the Securities and Exchange Commission, on how the agency will regulate digital assets, whether it needs new statutory authority, and how pending legislation such as the Genius Act (stablecoin legislation) could shape policy.

Atkins said establishing clear "rules of the road" for crypto is a priority and described an effort to move policy-making to notice-and-comment rulemaking rather than enforcement-by-prosecution. "A key priority of my chairmanship will be to develop a rational regulatory framework for crypto assets," Atkins said, noting the SEC's crypto task force is reviewing market practices and will publish a report ahead of proposed rules.

Why it matters: lawmakers argued that uncertainty in the U.S. regulatory regime has driven innovation and companies overseas and that legislation could provide the statutory underpinnings Atkins said would be helpful. Chairman Haggerty and other senators referenced ongoing congressional work on a stablecoin bill, and several members urged the SEC to balance innovation and investor protection.

Senators also asked whether exchanges that combine traditional securities and crypto products should be allowed to operate under a single entity and how consistent regulatory standards would be applied. Atkins said the task force will host roundtables and publish recommendations, then proceed through the rulemaking process. On the question of statutory authority, he said: "It would be great to be undergirded by statute. But in the meantime, I think we have enough authority under the securities laws to be able to come out with regulations in this regard."

Discussion vs. decision: the exchange of views did not result in a new SEC rule or a statutory change. Senators said they will continue to advance legislation (including the Genius Act stablecoin bill) and work with the agency as the SEC develops proposed rules and requests public comment.

Ending: senators asked the SEC to prioritize investor protection while enabling innovation; Atkins said the commission would pursue targeted, "fit for purpose" standards and seek to coordinate with other regulators and industry through notice-and-comment rulemaking.