SEC to investigate conflicts of interest in crypto
US Securities and Exchange Commission (SEC) Chairman Paul Atkins said the regulator will “do its job” and investigate conflicts of interest in the crypto industry “when necessary and justified.”
Atkins made the remarks at a Georgetown University conference after being asked about the Trump family’s involvement in crypto projects. He also shared his views on blockchain’s benefits and the mainstream adoption of DeFi.
The comments followed a New York Times report that UAE-based fund MGX invested $2 billion in Binance using stablecoins. The deal was reportedly conducted via USD1, a new stablecoin issued by World Liberty Financial (WLF) – a company publicly backed by the Trump family. At the same time, the US administration approved shipments of thousands of AI chips to the UAE, fueling suspicions of conflicts of interest.
Atkins stressed that the SEC does not have direct jurisdiction over WLF but reminded, “There are laws, and we will enforce them. Where necessary, we will investigate.”
Atkins took office in April, replacing Gary Gensler. Unlike his predecessor, he advocates for a more crypto-friendly approach. In June, he proposed an “innovation exemption” to allow faster rollout of onchain products. By year-end, he aims to enshrine this framework in SEC rules.
See also: Who are you, Mr. Paul Atkins?
Meanwhile, the SEC is running Project Crypto, aimed at updating digital asset regulations. The agency has already issued guidance on staking, clarifying that most Proof-of-Stake mechanisms do not fall under securities laws.
In this way, Atkins is trying to balance between investigating potential violations and creating a foundation for innovation, moving away from the strict “regulation by enforcement” approach of his predecessor.
See also: Who are you, Mr. Paul Atkins?
Meanwhile, the SEC is running Project Crypto, aimed at updating digital asset regulations. The agency has already issued guidance on staking, clarifying that most Proof-of-Stake mechanisms do not fall under securities laws.
In this way, Atkins is trying to balance between investigating potential violations and creating a foundation for innovation, moving away from the strict “regulation by enforcement” approach of his predecessor.
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