Atkins Unveils ACT Plan to Modernize SEC, Attract Crypto

SEC Chair Paul Atkins on April 20 announced a three‑pillar strategy called ACT: Advance, Clarify and Transform. He framed the plan as a replacement for what he described as a prior era of “regulation by enforcement.”

Atkins presented the framework in an interview and described it as a shift from a litigation-first posture to one that supports market functioning. “We will shift from a litigation‑first approach to one that helps markets function,” he said.

The Advance pillar focuses on modernization and greater engagement with new technologies. The agency intends to expand outreach to technology developers and market participants and to update processes so firms that moved operations offshore can consider returning to the United States.

Clarify targets clearer guidance for digital assets. Atkins highlighted a planned joint interpretive release with the Commodity Futures Trading Commission that aims to draw a legal distinction between tokenized securities and commodities to help developers and issuers determine regulatory status.

Transform proposes changes to SEC rules to reduce costs and complexity for companies accessing public markets. Atkins identified three barriers to reviving initial public offerings: the cost and complexity of disclosure requirements, what he described as “vexatious litigation,” and the use of corporate governance mechanisms by activist shareholders to press political or short‑term agendas.

On market structure, Atkins addressed reports that an exchange may change listing rules to let very large companies join a major index more quickly. He rejected claims that such adjustments would amount to manipulation and noted that investors could register approval or disapproval through trading activity.

When asked about suspicious trading ahead of high‑profile social media posts, Atkins declined to name specific investigations and said he remains in regular contact with U.S. Attorney Jay Clayton on matters of market integrity.

On prediction markets, Atkins said the SEC’s jurisdiction applies when contracts resemble binary options tied to corporate earnings; otherwise he expects courts and the CFTC to determine jurisdiction. Regarding broader retail access to private credit, he urged strong guardrails if retirement plans are allowed to invest, to protect beneficiaries from undue risk.

Industry groups, exchanges and issuers will monitor how the SEC turns the ACT framework into rulemaking, interpretive guidance and enforcement priorities. The agency has not yet released detailed rule text or a timeline for implementation.