The U.S. Securities and Exchange Commission (SEC) has formally signaled a major shift in its approach to digital assets, prioritizing clear rulemaking over litigation. In a regulatory agenda unveiled on September 4, SEC Chairman Paul Atkins directed agency staff to begin drafting comprehensive rules for the issuance, custody, and trading of crypto assets. This move aims to integrate the burgeoning industry with traditional Wall Street market infrastructure and definitively ends the controversial "regulation-by-enforcement" era that created years of uncertainty for the sector.

• A fundamental shift in Washington is set to end years of legal battles that have defined the relationship between regulators and the crypto industry.
• Discover the three key pillars of finance—issuance, custody, and trading—that will be completely reshaped by the new proposals.
• While the federal government is opening one door for crypto, Wall Street's own gatekeepers are adding new locks in response.
• Learn what this new era of clarity means for investors, exchanges, and the future of digital assets in the United States.

The announcement marks a watershed moment for the crypto industry in the United States, which has long operated in a gray area, pleading for a clear set of guidelines from Washington. For years, companies were left to interpret decades-old securities laws, often finding themselves the target of SEC enforcement actions that argued most digital tokens were unregistered securities. This created what many industry leaders called a "chilling effect," stifling innovation and pushing development offshore as firms sought jurisdictions with more defined legal frameworks. The new agenda directly confronts this issue, representing a deliberate pivot toward building a predictable environment for an industry that has become a significant part of the global financial conversation. This change in the SEC crypto policy is not just procedural; it’s a philosophical reset aimed at fostering responsible growth within the U.S. market.

At the heart of the new directive are three critical areas. First, the rules will address the offer and sale of crypto assets, providing a potential pathway for projects to launch tokens in a compliant manner. This could finally bring clarity to the long-debated question of which digital assets are securities. Second, the agenda targets custody, a crucial component for institutional investment. Major funds and asset managers require federally regulated custodians to hold assets securely, and the lack of clear rules for digital assets has been a primary barrier to entry for trillions of dollars in potential capital. By creating a clear digital asset framework for custody, the SEC could unlock a new wave of institutional adoption. Finally, the rules will amend regulations to allow crypto assets to trade on national securities exchanges and alternative trading systems, a move that would bring digital asset trading into the same regulated environment as stocks and bonds, offering investors greater protection and market stability.

This new chapter stands in stark contrast to the approach of the previous administration. Under former Chair Gary Gensler, the SEC initiated over 125 crypto-related enforcement actions, including high-profile lawsuits against major global exchanges like Coinbase and Binance. This strategy, often criticized as "regulation by enforcement," aimed to establish legal precedent through the court system. While it resulted in record monetary penalties in 2024, a Cornerstone Research report noted that the number of new cases had already begun to fall by 30% in the previous year. The current administration’s SEC crypto policy has since seen a significant number of these inherited cases dropped, signaling a clear and decisive retreat from the litigious posture of the past. The focus has now shifted from the courtroom to the commission's rulebook, a change the industry has long advocated for.

However, as federal-level crypto regulation becomes more accommodating, a new layer of scrutiny is emerging from the market's own gatekeepers. According to a recent report from The Information, the Nasdaq exchange is intensifying its oversight of publicly traded companies that raise capital specifically to purchase large sums of cryptocurrency. The exchange is reportedly delaying approvals and demanding more detailed disclosures from these firms, concerned that the strategy is being used to artificially inflate stock prices rather than for legitimate corporate treasury purposes. This development creates a fascinating paradox: just as the highest financial regulator in the country moves to welcome crypto, the exchanges themselves are tightening their own listing and compliance standards. It suggests that the path to full integration will be complex, requiring not only government rules but also the establishment of sustainable and transparent corporate practices that can withstand the scrutiny of public markets.

The road ahead will be a lengthy one. The formulation of new crypto regulation is a meticulous process involving drafting proposals, opening them for public comment, and finalizing the rules, all of which can take many months, if not years. Nonetheless, the agenda set forth by Chairman Atkins provides the industry with its most valuable commodity: a roadmap. For the first time, there is a clear indication of the direction of travel, allowing companies, investors, and innovators to begin planning for a future where digital assets are a fully integrated component of the U.S. financial system.

Expert Opinions and Quotes

Paul Atkins, SEC Chairman: “The agenda covers potential rule proposals related to the offer and sale of crypto assets to help clarify the regulatory framework for crypto assets and provide greater certainty to the market. A key priority of my Chairmanship is clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.” - Source

FAQs

What is the main goal of the SEC's new regulatory agenda?
The primary goal is to shift from an enforcement-led approach to one based on clear rulemaking. It aims to establish a predictable digital asset framework and provide explicit guidelines for the industry, which will enhance investor protection and foster responsible innovation in the U.S. This is a foundational change to crypto regulation.

How does this new approach differ from the previous administration's?
The previous SEC crypto policy relied heavily on "regulation by enforcement," using litigation against crypto firms to establish legal precedents. The new approach prioritizes creating a clear, upfront rulebook for companies to follow, aiming to reduce legal uncertainty and ambiguity.

**What does this mean for trading crypto on exchanges like Nasdaq? **
The new agenda directs the SEC to draft rules that would permit crypto assets to trade on national securities exchanges. If enacted, this would integrate digital assets into the traditional market infrastructure, allowing them to be traded with the same level of regulatory oversight and investor protection as stocks.

Why is Nasdaq increasing scrutiny on crypto-holding companies?
Nasdaq is reportedly concerned that some publicly listed companies may be acquiring large amounts of crypto not as a sound treasury strategy, but as a method to artificially boost their stock prices. The exchange is increasing its oversight to prevent potential market manipulation and ensure corporate crypto strategies are transparent and sustainable