America 'Ten Years Behind' on Crypto: SEC Chief Promises to Turn Regulator into 'Securities and Innovation Commission'

The United States is years behind its rivals in regulating digital assets, according to SEC Chair Paul Atkins, who has vowed to make catching up the agency's top priority.

Speaking at DC Fintech Week in Washington, Atkins admitted the U.S. is 'probably ten years behind' on crypto rules and promised a dramatic overhaul of how the Securities and Exchange Commission handles innovation.

'The crypto aspect is our job one,' he said, pledging to transform the SEC into what he half-jokingly called the 'Securities and Innovation Commission.'

Bringing Innovators Back Home

Atkins said the goal is to lure back blockchain pioneers who fled overseas because of confusing or hostile regulations. The SEC, he said, is now building a clear framework that protects investors while encouraging invention.

The agency plans to launch an 'innovation exemption' allowing startups to test blockchain projects under lighter rules before facing full compliance. The chair insisted the SEC already has legal authority to issue such exemptions and will start using it 'more boldly'.

'We can be forward-leaning in accommodating new ideas,' Atkins told delegates, adding that the move could restore America's leadership in digital finance.

The Push for Superapps

Atkins also spotlighted the global race to build 'superapps'—platforms combining payments, trading and shopping in a single interface. Asian tech giants like WeChat and Grab already dominate that market, but the U.S. has yet to produce its own version.

He argued that tighter coordination between U.S. regulators could change that. 'Thinking about regulatory coordination as an app in itself is clever,' he said. The SEC is now working with the Commodity Futures Trading Commission (CFTC) and the Treasury Department to align policies and cut red tape.

Atkins cited progress in Congress, including the GENIUS Act, which formally recognises stablecoins as legitimate financial instruments. Clearer, unified regulation, he said, would boost both business innovation and investor confidence.

Updating Outdated Rules

Much of the challenge, Atkins admitted, lies in the age of the U.S. securities laws—the 1933 Securities Act and 1934 Exchange Act—written long before digital assets existed.

At the heart of the debate is the 1946 Howey Test, which defines what counts as a security. While suitable for traditional stocks and bonds, critics say it no longer fits decentralised blockchain tokens.

'Tokenisation isn't about having thousands of coins,' Atkins explained. 'It's about putting real-world assets on-chain. That's where the real potential lies.'

He called tokenisation a game-changer that could reshape everything from property to capital markets, but only if regulators update their thinking to match 21st-century technology.

Rebuilding Trust with Crypto Firms

Atkins' remarks mark a notable shift for a regulator long accused of stifling innovation. After years of lawsuits against crypto giants like Ripple and Coinbase, the SEC now appears ready to reset relations with the industry.

The proposed innovation exemption could become the first step towards a balanced model—encouraging experimentation without sacrificing investor protection.

'For too long, innovators have gone to Europe and Asia to find clarity,' Atkins said. 'It's time they came home.'

The crypto world is watching closely. If the SEC delivers on its promise, analysts say, the U.S. could reclaim its place at the forefront of blockchain innovation and help shape the next era of global finance.