SEC Chair Paul S. Atkins signals a pivot in crypto regulations, rescinding policies that restricted innovations, with the 2026 SEC agenda focusing on broader tech-neutral categories.
These changes could reduce regulatory burden, encouraging institutional participation in digital assets, aligning with broader U.S. financial strategies.
SEC Modifies Approach to Cryptocurrency Regulation
The Securities and Exchange Commission (SEC) under Chair Paul S. Atkins is modifying its approach to cryptocurrency regulation. The 2026 examination priorities no longer include a dedicated section for "crypto assets." Instead, they focus on broader technology-neutral categories.
Paul S. Atkins, a long-serving figure at the SEC, has rolled back the Staff Accounting Bulletin 121 (SAB 121). This change facilitates banks holding digital assets without treating them as liabilities, marking a shift in regulatory posture.
SEC Eliminates Dedicated Crypto Asset Section in 2026
Removing specific crypto categories from SEC priorities could lead to a more integrated approach in examining technology and risk. Industry participants view the rescindment of SAB 121 as reducing capital friction for digital asset custody and banking.
Impacts on financial markets include potential growth in institutional crypto custody due to less stringent capital requirements. Historical trends show similar regulatory changes have previously influenced institutional engagement, and Atkins' adjustments may enhance it further.
SAB 121 Rescindment Reduces Banking Capital Friction
Previous SEC leadership under Gary Gensler had intensified the focus on crypto, highlighting "crypto assets" in examination policies. With Atkins’ changes, the approach mirrors past technology-neutral frameworks seen in other financial innovations.
Experts at Kanalcoin forecast that the revised SEC priorities could stimulate U.S. crypto innovation and align regulatory oversight closer to traditional assets, fostering an environment that supports technological growth and global competitiveness. "It's essential that our examination priorities focus on technology and risk-neutral categories, not solely on crypto assets," remarked Paul S. Atkins, emphasizing the strategic shift.