SEC Chair Paul Atkins Drops Bombshell Crypto Rulebook & Proxy Reforms—Brace for Impact
Wall Street's watchdog just reloaded. SEC Chair Paul Atkins unveiled a sweeping crypto regulatory framework alongside proxy voting reforms—a one-two punch aimed at taming the Wild West of digital assets while 'modernizing' shareholder democracy (because nothing says democracy like institutional veto power).
The new crypto rulebook throws down clear guidelines for exchanges, stablecoins, and DeFi protocols. No more regulatory arbitrage—play by the books or face the music. Meanwhile, proxy reforms could reshape corporate governance battles, assuming anyone still cares about old-economy stocks in 2025.
Atkins didn't just cross the Rubicon—he bulldozed it. The reforms come as Bitcoin flirts with $100K and TradFi dinosaurs finally admit blockchain isn't just for drug deals. 'Adapt or become a footnote,' the Chair warned—though we all know which option Wall Street will choose.
Bonus jab: The reforms conveniently drop right before election season. Nothing like some performative regulation to distract from that 40% institutional crypto ownership reporters keep ignoring.
SEC Chair Paul Atkins has announced two major reforms that he says will bring more clarity and fairness to today’s financial system. One focuses on finally giving crypto a simple, modern rulebook, while the other aims to reduce the growing influence of proxy advisory firms that shape how major companies make decisions.
According to Atkins, both sectors have been operating under outdated rules and now require a reset that reflects how markets work today.
A New, Simpler Rulebook for Crypto: What It Means
Atkins says the biggest challenge in crypto has been the lack of clear regulations. Digital assets have long been forced into old securities laws designed for the paper era, leaving both investors and developers uncertain about what counts as a security. To address this, the SEC has launched Project Crypto, a framework built on a straightforward idea: tokens can evolve.
A token may start as a security when a project raises funds, but once the network matures, the code is finished, and no single team controls it, the token may no longer be treated as a security. This approach gives projects room to grow without constant legal uncertainty.
Under Project Crypto, digital assets fall into four clear categories: network tokens, collectibles, digital tools, and tokenized securities. Only tokenized securities will remain under strict SEC oversight. Atkins also emphasized that fraud will continue to be punished and that tokenized financial products will still be regulated heavily.
Crypto companies, including Shyft Network, say this marks a major shift from the previous approach, which treated nearly all tokens as securities. Instead of regulating through lawsuits, the SEC is finally offering clear categories that reflect how the technology actually works. This could allow some tokens to trade on CFTC- or state-regulated platforms and help multi-service crypto apps obtain proper licensing.
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The SEC is still recovering from the recent 43-day government shutdown, which forced some companies to use older 20-day rules to go public. Atkins expects these temporary measures to continue for now but says the new crypto framework will restore stability.
Reining In the Power of Proxy Giants
Atkins is also targeting proxy advisory firms, which guide institutional investors on how to vote on issues such as executive pay and board decisions. He argues that some proposals pushed through these firms increasingly reflect political goals rather than business priorities. The SEC plans to revive earlier reforms and introduce stricter standards to ensure that voting advice is transparent and fair.
Large index fund managers like BlackRock and Vanguard will also face tighter oversight, as they influence corporate decision-making despite appearing to take a passive role.
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FAQs
What is Project Crypto announced by the SEC?Project Crypto is a new regulatory plan that could shift crypto oversight from the SEC to the CFTC for more balanced digital asset regulation.
What is SEC Chair Paul Atkins’ new crypto rulebook?Project Crypto creates four token categories and lets some tokens shift out of security status as networks mature.
How does Project Crypto change token regulation?Tokens can evolve: early-stage tokens may be securities, but decentralized, finished networks may no longer be regulated as such.
Why is the SEC targeting proxy advisory firms?The SEC plans tighter standards to ensure proxy voting advice is transparent, reliable, and focused on business—not politics.
How will large index fund managers be affected?Firms like BlackRock and Vanguard will face closer scrutiny due to their growing influence on corporate voting decisions.
