FameEX Hot Topics | Gensler’s Crypto Stance Slammed by SEC Chair, Self-Custody Endorsed

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins delivered a sharp rebuke of the prior administration’s approach to cryptocurrency oversight during a Monday roundtable titled “DeFi and the American Spirit.” The event, hosted by the SEC’s crypto task force, was part of an ongoing series aimed at exploring the regulatory challenges of digital assets. Atkins specifically criticized the enforcement-heavy strategy taken under former SEC Chair Gary Gensler, arguing that the aggressive legal posture hindered innovation and discouraged the development of decentralized technologies.

Atkins voiced strong support for allowing greater self-custody of digital assets, calling it a “foundational American value.” He argued that intermediaries often add unnecessary costs and create barriers to participation in onchain activities like staking. In his view, SEC policies targeting developers of self-custodial wallets—by treating them as brokers—demonstrated regulatory overreach that stifled technical progress. He also warned that rules on staking-as-a-service lack long-term authority unless supported by congressional legislation.

The roundtable marked the fifth such event in 2025 organized by the SEC’s crypto task force, led by Commissioner Hester Peirce. Previous events tackled a wide range of topics, including crypto trading, asset tokenization, custody issues, and the controversial classification of digital tokens as securities. Despite the scope of discussions, no further events have been scheduled, raising questions about the future direction of the task force and the agency’s regulatory roadmap.

Commissioner Caroline Crenshaw offered a more measured assessment, acknowledging the significance of the series but cautioning against unrealistic expectations. “These roundtables have surfaced numerous complex issues,” she said. “Although we hoped for a ‘spring sprint toward crypto clarity,’ the reality is that such clarity is elusive and cannot be rushed. With stakes this high, thorough and careful regulation is essential.”

Since President Donald Trump took office and Gary Gensler stepped down in January, the SEC appears to be shifting its posture on crypto policy, opting for a more flexible and deliberative framework. However, institutional uncertainty looms as both the SEC and the Commodity Futures Trading Commission (CFTC) face upcoming vacancies. On Tuesday, the Senate Agriculture Committee will consider Trump’s nominee, Brian Quintenz, for the position of CFTC Chair—an appointment that could have lasting implications for digital asset regulation.

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