FameEX Hot Topics | SEC Chair Criticizes Gensler’s Crypto Strategy, Backs Self-Custody

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins strongly criticized the previous administration’s approach to cryptocurrency regulation during a Monday roundtable titled “DeFi and the American Spirit.” Hosted by the SEC’s crypto task force, the event focused on digital asset policy and regulation. Atkins directly referenced the agency’s past strategies under former Chair Gary Gensler, accusing them of employing a heavy-handed, litigation-driven stance. He emphasized that current staking-as-a-service rules lacked solid legal grounding without congressional approval and highlighted self-custody as a key tenet of financial independence.

“I support giving market participants more freedom to self-custody crypto assets,” Atkins stated. “Excessive intermediation drives up costs and limits access to staking and onchain activities.” He criticized the previous leadership for stifling innovation by using enforcement to classify developers of self-custodial wallets and onchain tools as brokers, effectively discouraging the development of decentralized technologies.

This roundtable marked the fifth digital asset-focused event of 2025 organized by the SEC’s crypto task force, which is led by Commissioner Hester Peirce. Earlier sessions explored crypto trading regulations, custody frameworks, asset tokenization, and the ongoing debate over whether certain tokens qualify as securities. While this latest event gathered attention for Atkins’ remarks, the SEC has not announced any future roundtables, leaving uncertainty about the next steps in its regulatory agenda.

SEC Commissioner Caroline Crenshaw also offered a more cautious take, suggesting that while the discussions had been valuable, they had not yet provided the clarity the industry seeks. “Although the series was branded a ‘spring sprint toward crypto clarity,’ the complexity of the issues involved makes quick solutions unlikely,” Crenshaw noted. “When the stakes are this high, we must prioritize getting it right over rushing the process.”

Since President Donald Trump assumed office and Gensler stepped down in January, the SEC has shown signs of recalibrating its approach to digital asset oversight, both through rulemaking and litigation strategy. Meanwhile, both the SEC and the Commodity Futures Trading Commission (CFTC) face potential leadership gaps as commissioner terms expire. On Tuesday, the Senate Agriculture Committee is set to evaluate President Trump’s nominee, Brian Quintenz, for the role of CFTC Chair, a move that could further reshape crypto regulation in the months ahead.

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