Paul Atkins: SEC must balance crypto innovation with enforcement
Atkins responded to a question about the lack of major insider trading cases involving cryptocurrencies, despite signs of coordinated trading activity on messaging apps such as Telegram and Signal. The discussion referenced the brief launch of a satirical meme coin “Sorkin coin” named after “Squawk Box” host Andrew Ross Sorkin that at one point had a market capitalization in the hundreds of millions.
“The SEC has been very active inthat area,” Atkins said. “Fraud is fraud… our mission is to protect investors, promote capital formation, and ensure orderly and efficient markets.”
He added that regulatory actions in the crypto space have sometimes “been part of the problem of innovation,” suggesting the agency is aware of its tightrope walk between enforcement and overreach.
Atkins was also asked about the SEC’s role in ensuring fairness among elected officials trading stocks—an issue that’s gained traction amid high-profile trades by members of Congress. While he noted that the STOCK Act was passed to add transparency, he admitted that enforcement is challenging.
“The SEC gets literally thousands and thousands of tips … from whistleblowers,” he said. “We take all tips seriously and look into them. So obviously I can’t comment on anything, but just let’s say that the SEC is very active.”
On company disclosures, Atkins acknowledged that modern markets have changed how information flows.
“It’s up to the issuer to ensure fair access,” he said, referring to companies now using Twitter, podcasts, and other digital channels to share news.
Atkins raised concerns about the growing push to open private credit markets to retail investors. He warned that investors may be “marketed the worst of the credits” that institutions have already rejected.
The agency is “at a cusp of needing to look at the rules” and it will be “cognizant of the risks” when evaluating access standards like accredited investor criteria, he said.
Atkins emphasized the need for disclosure and guardrails, especially as private markets evolve as it is “very important to have good protections in place,” he concluded.
