SEC Chair Declares End to ‘Regulation Through Enforcement,’ Embraces Tokenization as Innovation
In a landmark policy shift, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has formally distanced the agency from its historically aggressive stance on crypto enforcement, declaring that “regulation through enforcement” is over and calling tokenization a “market innovation” to be encouraged.
“Tokenization is an innovation,” Atkins told CNBC in an interview on Wednesday. “And we at the SEC should be focused on how to advance innovation in the marketplace.”
Atkins emphasized transparency and regulatory clarity, stating that the Commission under his leadership will aim to provide a stable foundation for innovators and entrepreneurs — a clear departure from the opaque, enforcement-heavy approach taken during former SEC Chair Gary Gensler’s tenure.
“My whole goal is to make things transparent from the regulatory aspect and give people a firm foundation upon which to innovate and come out with new products,” Atkins added.
NEW: “Tokenization is an innovation,” says 🇺🇸 SEC Chair Paul Atkins.
“The SEC should be focussed on, how do we advance innovation in the marketplace.” 📊 pic.twitter.com/MLZu4ObQ8G
— Bitcoin.com News (@BTCTN) July 2, 2025
A Pro-Crypto Leadership Agenda
Atkins assumed office in April after being nominated by President Donald Trump. He is widely known for his pro-crypto stance and commitment to building a robust but flexible regulatory framework for digital assets.
His view echoes sentiments shared by industry leaders and institutional stakeholders who have long criticized the SEC for stifling innovation through lawsuits and vague interpretations of securities law.
The shift comes as tokenization — the process of issuing blockchain-based digital representations of real-world assets — is rapidly gaining momentum. A recent Binance Research report highlighted tokenization as a major driver of crypto adoption in 2025, supported by increasingly favorable U.S. regulations.
The World Economic Forum has also cited tokenization as a transformative bridge between traditional finance and blockchain technology.
According to RedStone, the total value of tokenized real-world assets (RWAs) exceeded $24 billion in the first half of 2025, with private credit and U.S. Treasurys dominating the market.
Tangible Progress on Regulatory Clarity
Since Atkins took over, the SEC has made several notable strides in clarifying crypto rules:
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In April, the SEC’s Division of Corporation Finance released guidance for public companies on digital asset disclosures, helping firms determine which tokens fall under securities laws.
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In June, the agency approved the first U.S. crypto staking ETF for Solana (SOL), a major step forward for institutional participation in decentralized finance.
The REX Osprey Solana Staking ETF, launched on Wednesday, allows investors to earn staking yields through a regulated exchange-traded product — a milestone that would have been unlikely under previous leadership.
Wall Street Signals Growing Confidence
The regulatory shift is already influencing institutional strategies. JPMorgan Chase, for example, is reportedly piloting a tokenization project for carbon credits through its Kinexys blockchain platform, in collaboration with S&P Global Commodity Insights, the International Carbon Registry, and EcoRegistry.
These moves suggest that Wall Street firms are increasingly viewing tokenization as a viable new business model, especially now that federal regulators appear more open to innovation.
With Chair Atkins at the helm, the SEC is signaling a new era of regulatory openness that could usher in wider institutional adoption, increased capital formation, and more U.S.-based crypto innovation — reversing years of legal uncertainty and bureaucratic friction.