Crypto Assets friendly person takes office as chairman of the U.S. SEC! 72 Crypto Assets ETFs are about to be approved?

The U.S. Securities and Exchange Commission (SEC) has welcomed a new leader, and this personnel change may have far-reaching implications for the regulation of Crypto Assets and digital assets. On April 21, 2025, local time, the SEC officially released a press release confirming that Paul S. Atkins, widely regarded as a "Crypto Assets-friendly individual," has been sworn in as the 34th chairman of the U.S. SEC. This appointment has sparked significant attention from the market, especially considering that there are currently up to 72 applications for exchange-traded funds (ETFs) related to Crypto Assets awaiting approval from the SEC. Does Atkins's appointment mean that these ETFs will receive the green light? Atkins was nominated by current President Donald Trump on January 20 of this year and was confirmed by the Senate earlier this month with a vote of 52 in favor and 44 against. In his statement upon taking office, he said: "I am honored to have the trust of President Trump and the Senate in leading the SEC. I look forward to working with my colleagues and the dedicated professionals at the SEC to advance the Commission's core mission: to facilitate capital formation; to maintain fair, orderly, and efficient markets; and to protect investors. We will work together to ensure that America is the best and safest place in the world to invest and do business." Atkins is not a new face at the SEC. He served as an SEC commissioner from 2002 to 2008 during the George W. Bush administration, gaining extensive regulatory experience. Notably, he has long advocated for a "technology-neutral" regulatory framework, arguing for the distinction between the commodity and securities characteristics of crypto assets to avoid a one-size-fits-all regulatory approach that stifles industry innovation. This attitude aligns closely with the Trump administration's strategy of "making America the global center for crypto assets," laying the groundwork for subsequent policy adjustments. Atkins's appointment is widely seen as a signal of "regulatory easing" in the industry. His predecessor, Gary Gensler, was known for his tough criticism of the crypto industry, particularly against "altcoins" beyond Bitcoin. Gensler believed that the value of most crypto assets is driven by market sentiment rather than fundamentals, making them unsustainable and prone to devaluation. During his tenure, the SEC adopted an enforcement-oriented strategy, suing multiple crypto companies and setting numerous barriers to the approval of new Crypto Assets ETFs, especially products other than Bitcoin spot ETFs. In stark contrast to Gensler, Atkins publicly criticized the previous SEC administration's approach to regulating the crypto industry as "vague" and "too aggressive" during a Senate confirmation hearing in March. He pledged to reduce political interference, push for clear regulations on digital assets, and support capital formation. He made it clear that developing a clear and forward-looking regulatory regime for digital assets would be a "key priority" for him once he took office. Industry observers generally expect that Atkins's leadership will mark a significant shift in SEC policy, moving from past enforcement-centered actions to creating a clearer and more predictable regulatory environment. The market is filled with anticipation, expecting that under his leadership, the approval speed for Crypto Assets ETFs may accelerate, the rules for token issuers may become more friendly, and the SEC's approach to regulating Crypto Assets may be more collaborative. One analyst even optimistically claimed, "The SEC has officially become a government that supports Crypto Assets!"

However, the first challenge faced by the newly appointed Atkins is an unprecedented "marathon" of Crypto Assets ETF approvals. According to data compiled by Bloomberg ETF analyst Eric Balchunas, there are currently 72 crypto-related ETF applications awaiting approval or listing options at the SEC. Analysts believe that the surge in applications may be a result of companies trying to test the SEC's limits. The decisions made by Atkins regarding the numerous ETF applications may set new precedents for future applications related to Crypto Assets. The extensive range of assets covered by this long list awaiting review is astonishing. In addition to mainstream crypto assets with high market values such as Solana (SOL), Ripple (XRP), Cardano (ADA), and Litecoin (LTC), it also includes numerous meme coins and ETFs related to NFTs, such as Dogecoin (DOGE), Bonk (BONK), and Fat Penguin (Pengu), as well as the meme coin for the First Lady of the United States (Melania) and the meme coin ETF named "Official Trump." According to forecasts by Bloomberg, if all 72 ETFs are approved, it is expected to attract over $80 billion in funds during the first year, propelling the total market value of crypto assets to surpass $3 trillion. Although the spot ETFs for Bitcoin and Ethereum were approved at the end of Gensler's term and afterward, marking a milestone for the inclusion of Crypto Assets into the mainstream financial system, it has also sparked intense debate over which Crypto Assets should be regarded as "commodities" that can issue ETFs and which should be considered "securities" and thus subject to stricter regulation. For Atkins, defining these diverse crypto assets, especially those meme coins and NFT-related assets with extremely high volatility and lacking clear fundamental support, in terms of whether they qualify as a "Commodity Trust" will be an unprecedentedly complex challenge. His decision on this issue will undoubtedly set an important precedent for future crypto-related ETF applications and have a profound impact on the development direction of the entire market.

However, it is worth mentioning that, despite the market's high expectations for Atkins, his appointment is not without controversy. The first issue is the complex web of interests: according to ethical disclosure documents, he and his wife hold a portfolio valued between $327 million and $589 million, which includes an exposure of $6 million in digital assets. What is even more striking is that Patomak Global Partners, where he serves as an advisor, previously had business dealings with FTX, and its investments in institutions like Off the Chain Capital are deeply involved in the encryption field. This intricate connection with the Crypto Assets industry raises concerns about whether he can remain neutral during the regulatory process. Therefore, how to strike a balance between maintaining regulatory fairness and promoting industry development will be a key proposition to test his political wisdom. Looking back from a new historical juncture, Atkins's assumption of office is both coincidental and inevitable. On the one hand, the global market value of Crypto Assets has exceeded $2.8 trillion, and the holdings of Wall Street institutions have surpassed 5%, forcing regulatory agencies to take this emerging asset class seriously; on the other hand, the competitive and cooperative relationship between China, the US, and Europe in the field of crypto regulation is becoming increasingly complex, and the US urgently needs to reshape its global leadership in crypto governance. Looking ahead, the cryptocurrency market is expected to bid farewell to "barbaric growth" and enter a new stage of "institutional empowerment." As Atkins stated in his inaugural speech: "We should not turn a blind eye to innovation, nor should we allow regulation to become a shackle to progress. The mission of the SEC is to create a stage for responsible innovation, not to build walls." Whether this regulatory transformation can deliver on its promises remains to be seen. #Crypto Assets market rebounds