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- SEC to dismantle FinHub and spread innovation roles across all departments.
- New rulemaking to allow firms to manage crypto and securities under one system.
- Atkins pushes for unified financial platforms combining decentralized and traditional services.
U.S. registered firms could soon be permitted to hold, manage, and trade securities and digital assets under the same rules. Paul Atkins made this proposal on May 19, 2025, changing the direction of financial regulations.
Atkins explained that firms should have the option to take care of their trading and custody functions simultaneously. He believes it will allow investors to pay less and help authorities manage and oversee digital market rules more effectively.
Moskov heralded the possibility of combining crypto and traditional finance to build united financial platforms. These platforms could help develop applications that combine decentralized and centralized systems within one interface.
Atkins says that industry sector representatives have requested that the SEC control digital assets and tokens for quite some time. Therefore, the SEC is coordinating staff efforts to propose new rules.
Atkins argued that letting the SEC solely enforce rules was damaging to the market’s development. He admitted that many firms were served with subpoenas before they could consult with the agency.
As a result, he arranged for the Corporation Finance Division to work on boosting the exchange of news and information between the public and industry. He called for rules that are updated to fit today’s markets and latest technologies rather than ones from the past.
SEC Shuts Down FinHub and Expands Innovation Roles Across All Departments
He considered SPDR ETFs and Regulation ATS to be examples of how regulations can improve. These innovations were successful because the SEC permitted markets to develop with flexible supervision.
He also mentioned guidance the Division of Trading and Markets recently gave to broker-dealers and transfer agents. The updates make it easier for companies offering crypto services to know what regulators expect of them.
With this change, the SEC is breaking up its FinHub division, which was established in 2018 to support innovation. Atkins felt that because the agency was small and lacked central authority, it could not help advance technology there.
FinHub’s roles will be added to several departments to incorporate innovation into the SEC’s regular activities. According to Atkins, this decision is part of a plan to ensure the company’s innovation is spread beyond one department.
Khan said at the end that the SEC needs to change as the financial markets innovate. Atkins pointed out that regulators are not allowed to expect the financial system to remain the same as everything else transforms over time.
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