SEC Chair Paul Atkins Lays Out Crypto Vision as ETF Delays Extend Regulatory Uncertainty

SEC Chair Paul Atkins outlined his plans for overhauling the agency’s approach to cryptocurrency regulation during a public meeting of the SEC’s crypto task force on Monday. His remarks come as the agency continues to postpone decisions on several high-profile crypto-related exchange-traded fund (ETF) applications, further signaling a slow and cautious approach to digital asset oversight.

“A key priority of my chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody and trading of crypto assets while continuing to discourage bad actors from violating the law,” Atkins said. He also hinted at potential rule changes to allow registered broker-dealers operating alternative trading systems (ATS) to handle trades in non-securities like bitcoin and ether — the two largest cryptocurrencies by market cap.

Atkins, who assumed office last month, has emphasized his commitment to creating a firm regulatory foundation for digital assets while keeping politics out of securities law.

The crypto industry has long debated with federal regulators about how securities laws should apply to digital assets, arguing that many crypto tokens are closer to commodities than securities. Tokens deemed securities would require firms to register with the SEC and meet disclosure obligations.

Former President Donald Trump, who has dubbed himself a “crypto president,” has promised to reverse the prior administration’s regulatory crackdowns. Under President Joe Biden, the SEC pursued legal actions against several firms, including Coinbase and Kraken, for alleged securities violations — many of which are now paused or being withdrawn under the new leadership.

Republican Commissioner Hester Peirce, known for her pro-crypto stance, is heading the SEC’s crypto task force and is responsible for helping draft new rules and guidance for the sector.

SEC Delays Multiple Crypto ETF Applications

On May 13, the SEC postponed decisions on several crypto-related ETF applications, including those from Grayscale and BlackRock, extending the agency’s review timeline and reinforcing expectations that no ETF approvals will come before the final quarter of 2025.

Grayscale’s proposed spot ETFs for Solana (SOL) and Litecoin (LTC) were delayed, with new filing deadlines set for August 11 and October 10, respectively. The SEC also deferred action on BlackRock’s request to enable in-kind redemptions for its approved spot Bitcoin (BTC) ETF. Unlike the Grayscale products, BlackRock’s request does not involve initial approval but relates to the technical mechanics of ETF operation and currently has no new deadline.

In a separate move, the SEC acknowledged the 19b-4 filing for a 21Shares spot Dogecoin (DOGE) ETF, marking the beginning of the official review period for that proposal under the agency’s statutory timeline.

These delays reflect a broader trend across more than 70 crypto-related ETF applications currently under SEC review. On April 29, the agency also deferred decisions on five other ETFs, following its practice of maximizing review periods allowed under law.

Bloomberg ETF analysts James Seyffart and Eric Balchunas described the latest wave of delays as routine. Seyffart noted that the postponements were “expected,” with most affected products facing final deadlines no earlier than October. Balchunas added that meaningful approvals are unlikely until Atkins concludes internal strategy meetings with staff. “They’ve been taking outside meetings with people. Probably coming up with a strategy. After that, likely approvals,” he said.

Long Road Ahead for Crypto ETFs

The SEC's crypto ETF decisions follow a structured statutory review process based on the Federal Register’s publication of proposed rule changes. The agency typically uses review intervals of 45, 90, 180, and 240 days, providing several opportunities to extend timelines before making final determinations.

The recent delays suggest the SEC will likely use the full extent of these statutory windows before issuing decisions. With no ETF in this group facing a final deadline before late Q3, both applicants and investors will remain in limbo as the regulatory landscape for crypto-linked investment vehicles continues to take shape.