SEC to Issue Warning Notices Before Crypto Crackdowns, Says Chair Atkins

The US Securities and Exchange Commission (SEC) is shifting its stance on crypto regulation, moving away from the aggressive enforcement tactics that defined the agency’s previous ￰0￱ Takeaways: SEC Chair Paul Atkins says crypto firms will now receive warning notices before any enforcement ￰1￱ rejected Gensler’s broad view of crypto as securities and supports tokenized asset ￰2￱ SEC has dropped several legacy cases and launched a Crypto Task Force to improve industry ￰3￱ an interview with the Financial Times on Monday , SEC Chair Paul Atkins said the agency would now issue preliminary notices of technical violations before pursuing formal enforcement actions against crypto firms.

“You can’t just suddenly come and bash down their door,” Atkins said. “Businesses can now expect to first receive a preliminary notice.” Atkins Breaks from Gensler’s Lawsuit-Heavy Crypto Enforcement Strategy The comments signal a marked break from the approach under former SEC Chair Gary Gensler, who was frequently criticized for using lawsuits as the primary tool to regulate the crypto ￰4￱ Gensler’s tenure, the SEC launched legal battles against high-profile firms including Ripple Labs, Terraform Labs, Binance, Coinbase, and Kraken, actions that cost the industry billions in legal ￰5￱ said many of those actions lacked legal grounding and predictability.

“It would shoot first and then ask questions later,” he noted, emphasizing the need for clearer process and ￰6￱ defining week for digital asset ￰7￱ Chairman Paul Atkins declared "crypto's time has come," BlackRock announced plans to tokenize ETFs, and Nasdaq filed to enable tokenized securities ￰8￱ trend is clear: tokenization is transitioning from innovation… ￰9￱ — Ondo Finance (@OndoFinance) September 14, 2025 He also suggested companies should be given up to six months to address issues before enforcement is ￰10￱ another key policy shift, Atkins pushed back against Gensler’s interpretation that most cryptocurrencies are ￰11￱ said most tokens do not fall under securities laws and voiced support for trading tokenized stocks and bonds that carry the same legal rights as their underlying ￰12￱ taking office in April, Atkins has led the SEC to establish a dedicated Crypto Task Force and has dropped several ongoing enforcement actions inherited from the Gensler ￰13￱ changes reflect a broader effort to rebuild trust with the industry and promote regulatory ￰14￱ new direction may signal a less adversarial relationship between ￰15￱ and the digital asset sector, at least for ￰16￱ Crypto Bill Aims to Limit SEC Overreach, Shield DeFi Developers Last week, US lawmakers released a revised draft of the Responsible Financial Innovation Act of 2025, proposing clear regulatory boundaries between the SEC and CFTC, and creating a Joint Advisory Committee to promote cooperation and ￰17￱ agencies would be required to publicly respond to committee recommendations, with a public roundtable set for ￰18￱ bill introduces explicit protections for DeFi developers, validators, wallet builders, and liquidity providers, as long as the protocols remain ￰19￱ safeguards address growing concerns following enforcement actions like the Tornado Cash case, which raised fears of criminal liability for open-source development.

Airdrops, staking rewards, and DePIN tokens are also covered under new definitions, shielding them from securities ￰20￱ draft aims to remove regulatory ambiguity, reduce friction, and encourage responsible innovation across emerging blockchain sectors.