USDThis Week in US Crypto Law: SEC Flip, Fed Relief, Mining Rejections
Paul Atkins Sworn in as SEC Chairman, Promises Pro-Crypto Regulatory Approach
Paul Atkins was sworn in as the 34th Chairman of the SEC on Monday, after a 52-44 Senate vote. Nominated by President Trump, Atkins previously served as an SEC Commissioner and is known for his pro-crypto stance. He aims to implement a more favorable approach to digital asset regulation, contrasting with his predecessor Gary Gensler's aggressive enforcement. With a net worth of approximately $327 million, including $6 million in crypto, Atkins seeks to facilitate capital formation while protecting investors. The SEC is currently reviewing 72 ETF applications for various altcoins, signaling potential changes in crypto regulation.
Fed Eases Crypto Restrictions for Wall Street Banks Amid Pro-Crypto Shift
On April 24, 2025, the Federal Reserve reversed its previous guidelines that limited Wall Street banks from engaging with Bitcoin and cryptocurrency, indicative of a shift toward a more pro-crypto stance under the Trump administration. Although state member banks can now offer crypto services without prior approval, the Fed stopped short of granting direct access to master accounts for crypto-specific banks such as Custodia and Kraken Financial. This regulatory easing was received positively by business figures like MicroStrategy’s Michael Saylor and coincided with a significant uptick in crypto ETFs, which saw their best performance since January, accumulating $2.6 billion. However, the FDIC and OCC simultaneously urged banks to remain vigilant regarding the risks associated with crypto, highlighting volatility and liquidity concerns. Analysts suggest that this regulatory shift, alongside political uncertainty, may prompt aggressive rate cuts from the Fed, potentially driving more investment into digital assets.
New SEC Chair Paul Atkins Highlights Blockchain Benefits, Vows Clear Crypto Regulations
Paul Atkins, the new chair of the US Securities and Exchange Commission (SEC), emphasized the potential advantages of blockchain technology during his remarks at the agency's third crypto roundtable on April 25, 2025. He cited benefits such as efficiency, risk mitigation, transparency, and cost reduction, indicating his intention to create clear regulatory guidelines for digital assets. Atkins acknowledged that previous leadership under Gary Gensler contributed to uncertainty in the market. Critics note that Atkins' appointment may signal a shift towards a more favorable stance toward the crypto industry, aligning with President Trump's commitment to deregulation. While some industry representatives express optimism regarding a less intimidating regulatory environment, uncertainty remains about future regulations. The SEC's crypto task force will hold additional roundtables in May and June to explore tokenization and decentralized finance, involving consultations with digital asset firms to shape an effective regulatory framework.
Iranian National Indicted for Operating $30M Nemesis Darknet Marketplace
Behrouz Parsarad, an Iranian national, has been indicted for operating the Nemesis darknet marketplace from March 2021 to March 2024, facilitating over 400,000 transactions, including 55,000 stimulant purchases and 17,000 opioid sales. The platform served over 150,000 users and processed nearly $30 million in drug sales before its shutdown by U.S. and European authorities. Parsarad faces a life sentence for money laundering and drug distribution. Despite U.S. sanctions, he reportedly plans to establish a new marketplace. The operation's complexity suggests a broader team may have assisted him, though no additional arrests have been made.
SEC Considers Cross-Border Sandbox Proposal to Enhance Digital Asset Regulation
The U.S. SEC reviewed a cross-border regulatory sandbox proposal for digital assets involving Perkin Law, the Salvadoran National Digital Asset Authority, and Heather Shemilt. This initiative aims to leverage real-world data to enhance the U.S. digital asset regulatory framework, fostering international collaboration. The proposal may lead to increased institutional interest in regulatory sandboxes, which historically have improved digital asset policies, as seen in Singapore and the UK. While the proposal lacks specific digital asset mentions, its emphasis on broad regulatory enhancements signifies a notable step toward better compliance and innovation in the sector.
Vilonia, Arkansas, Rejects Crypto Mining Proposal Amid Community Concerns
The planning commission of Vilonia, Arkansas, unanimously rejected a cryptocurrency mining proposal due to strong community opposition over noise, energy consumption, and environmental concerns. Residents expressed fears that the operation would disrupt their quiet town and strain infrastructure, referencing experiences from other regions where mining led to rising electricity costs and constant noise. This follows a history of similar rejections in Vilonia, including a denied proposal from Vilo AR in 2023. Additionally, Arkansas lawmakers have introduced bills aiming to restrict crypto mining, reflecting a broader trend of scrutiny toward such operations in the U.S.
This article has been refined and enhanced by ChatGPT.
