US ‘10 Years Behind’ on Crypto, Fixing It ‘Job One’

During a recent event in Washington, DC, US Securities and Exchange Commission (SEC) Chair Paul Atkins said the United States is a decade behind in crypto and that addressing the issue is a priority for the regulator.

During the DC Fintech Week event on Wednesday, Atkins said he thinks the United States is “probably 10 years behind” on cryptocurrency. “The crypto aspect is our job one,” he said.

Atkins said the SEC aims to “build a strong framework to actually attract people back into the United States who may have fled.” The agency wants this framework to allow innovation to thrive.

“I like to say that we’re the securities and innovation commission now,“ he quipped.

Exemptions for innovation

Atkins explained that developing suitable crypto regulation is part of the “embrace of innovation,” and that the SEC is working full-time on crypto regulation. He hinted at an “innovation exemption” to allow for experimentation with new ideas.

“We at SEC with respect to our statutes have pretty broad authority for exemptions to be made, and so I think we can be, you know, very forward-leaning in that in order to accommodate new ideas,“ he said.

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Atkins pushes for superapps

Atkins spoke favorably about the concept of “superapps,” integrated financial platforms that combine payments, investments and other services in one interface, suggesting they could foster innovation if properly regulated. Developing such apps, largely inspired by Chinese giants including WeChat, has long been an ambition for US companies, but no Western superapps have emerged as of yet.

Still, increasing US regulatory support may tip the balance in favor of developing such services. In September, Atkins expressed support for platforms that offer multiple financial services under a single regulatory framework.

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During the event, Atkins also said that “thinking about the regulatory coordination as an app in and of itself is very clever.” He said that it would also be a way to coordinate different regulatory agencies. Atkins did not elaborate on how the SEC might pursue such coordination, but said the agency intends to make the US a home for crypto innovation, not an afterthought.