A major shift in the Securities and Exchange Commission (SEC)’s approach to crypto regulation is underway, led by Paul Atkins’ appointment as Chairman and Hester Peirce’s continued role. This change aims to foster innovation within the industry while establishing clearer compliance pathways for cryptocurrency markets. 2025 marks the start of a new era for SEC policy concerning digital assets. The move signals a break from the previous strict enforcement stance exemplified by actions like the BlockFi settlement and the Ripple lawsuit, which often created uncertainty in the crypto market. 2025 sees the creation of a Crypto Task Force led by Acting Chairman Mark T. Uyeda. The task force will engage with stakeholders to shape a more transparent regulatory framework for crypto trading and custody. This collaborative approach is expected to boost confidence in the cryptocurrency markets, particularly within DeFi and Layer 1/Layer 2 spaces.