SEC Chair Paul Atkins Plans Crackdown on Proxy Advisors, Details New Crypto Rulebook

The U.S. regulatory landscape for crypto is shifting rapidly as SEC Chair Paul Atkins unveils a clearer token rulebook. Meanwhile, Acting CFTC Chair Caroline Pham indicated that the CFTC is preparing to open the door to regulated spot crypto trading next year.

SEC Pushes New Crypto Rulebook Amid Post-Shutdown Recovery

During an interview on Fox Business, Paul Atkins revealed that some companies used older manual methods to go public during the shutdown. Those firms already had feedback from SEC staff and used a 20-day rule to proceed. Atkins expects similar moves to continue until normal processing resumes.

Paul Atkins further noted that tokens can transition out of security status as networks decentralize, which could give crypto projects a clearer regulatory path. He said the SEC will work with the CFTC (the other top regulator in the U.S.) to avoid overlapping rules and remove confusion surrounding digital assets.

The Acting CFTC Chair also announced that she is leading the effort to bring listed spot crypto to CFTC-registered exchanges in 2025. She noted that former CFTC Chair J. Christopher Giancarlo introduced Bitcoin futures in 2017, and she intends to deliver the same breakthrough for spot markets next year. Together, the updates show both agencies moving in a coordinated direction after years of uncertainty around digital asset oversight.

Atkins also detailed a new crypto rulebook designed to replace years of uncertainty. He said the industry has operated “in a fog” because digital assets do not fit old paper-based securities rules. As Atkins noted in a speech he delivered earlier this week, the SEC will clarify which cryptocurrencies are securities and which are not.

Hence, the new framework divides digital assets into commodities, collectibles, tools, and tokenized securities. Only the last category qualifies as securities.

Paul Atkins Moves to Limit Proxy Power and Advance Crypto Rulebook

Atkins further stated that proxy advisory firms hold too much influence over corporate decisions. He said several firms push recommendations that shape executive pay, mergers, and board votes despite serious conflicts of interest. He argued that many shareholder proposals have been “weaponized” by activists who use corporate governance rules to advance political agendas.

Paul Atkins said the SEC will revisit rules introduced during the first Trump administration but which later stalled in court. The agency will now issue new proposals that limit the power of proxy advisors and require clearer standards for institutional investors.

The SEC chair confirmed that the updated rules will arrive next year. He explained that the SEC is recovering from a 43-day government shutdown that froze new IPO filings and halted corporate finance activity.

The SEC chair added that large index fund managers, including BlackRock and Vanguard, will also face new scrutiny. According to him, they act like passive investors but often influence management decisions.