U.S. Securities and Exchange Commission Chair Paul Atkins delivered his most direct critique yet of former Chair Gary Gensler's legacy during a fireside chat at the University of Texas on Friday. Atkins said the SEC under Gensler "never tried to adapt to innovation," replacing clear rules with an "enforcement-first" approach that left the U.S. far behind in the global crypto regulatory race.
Atkins characterized the previous approach as a "big missed opportunity," arguing that regulatory uncertainty during Gensler's tenure not only drove compliant firms away but pushed innovation offshore. He stressed that the SEC has completely reversed course since the Trump administration took office, shifting from hostility to a friendly posture.
Three Key Policy Shifts
Atkins detailed concrete changes under the new leadership:
- Dropping enforcement cases: The SEC has withdrawn multiple lawsuits and investigations targeting major crypto institutions, including high-profile enforcement actions against exchanges and token issuers from the Gensler era.
- Crypto task force: A working group led by Commissioner Hester Peirce has been operating for months, issuing exemption orders for various crypto assets and holding roundtable discussions with the industry.
- Project Crypto: A "chain reform plan" Atkins launched last year aims to fundamentally rewrite how U.S. securities law applies in the crypto age, allowing financial markets to migrate onto blockchains in a compliant manner.
WisdomTree Tokenized Fund Gets Green Light
Atkins highlighted the transformative potential of distributed ledger technology in payment clearing and settlement, noting settlement times have already shrunk from five days to one, with the goal of T+0 (instant settlement).
As a concrete achievement, he disclosed SEC approval for the WisdomTree Treasury Money Market Digital Fund (WTGXX) to operate as a tokenized fund with 24/7 instant settlement. Backed by U.S. Treasuries, the fund manages approximately $730 million and yields around 3.5% annually. It is issued across nine chains including Ethereum and Solana, with shares priced at $1, functioning as "tradable digital cash."
Atkins also hinted at future approvals for tokenized bank deposits and other innovative products, saying "You ain't seen nothing yet," signaling broader regulatory easing ahead.