SEC’s New Appointments Signal Collaborative Shift in Digital Asset Regulation

The U.S. Securities and Exchange Commission (SEC) is undergoing a significant strategic evolution, marked by recent high-level appointments that signal a potentially more collaborative and nuanced approach to the burgeoning digital asset sector. This shift under Chairman Paul Atkins suggests a departure from previous, more contentious regulatory stances, aiming instead for greater clarity and engagement with the blockchain and cryptocurrency industries.

Strategic Appointments Signal New Direction

The SEC recently announced four senior appointments, with two key figures possessing notable experience in digital assets. These appointments are poised to reshape the agency’s interaction with the evolving financial landscape.

Key Figures with Digital Asset Acumen

Brian T. Daly has been appointed as the Director of the Division of Investment Management, effective June 8. Daly joins the SEC from Akin Gump Strauss Hauer & Feld LLP, where he was a partner specializing in investment management. His extensive background encompasses digital assets, cryptocurrencies, blockchain technology, and traditional financial services, including hedge and credit funds. Daly previously commented on the SEC’s reversal of the Biden administration’s guidance known as SAB 121, advocating that the former rule hindered responsible bank broker-dealers and financial intermediaries from acting as crypto custodians. He emphasized that robust custody services are foundational for financial institutions offering crypto services to clients. Daly has expressed optimism about the current direction of the SEC and his commitment to tailoring rule-making within the agency’s statutory authority while ensuring regulatory compliance.

Jamie Selway is set to assume the role of Director of the Division of Trading and Markets on June 17. Selway’s experience includes advising clients on capital markets issues as a partner at Sohron Advisors. His LinkedIn profile further reveals his advisory roles with various financial technology companies and a tenure as global head of institutional markets at Blockchain.com from 2018 to 2019. Selway voiced enthusiasm for his new role, stating, “Chairman Atkins is bringing about a new day at the SEC. I thank him for selecting me to lead Trading and Markets at this exciting and pivotal time. Together, we will promote the SEC’s mission and enable innovation to the benefit of our nation’s investors.”

The significance of Selway’s appointment for the regulated blockchain sector was highlighted in a social media post: This is a really big deal for the regulated ‘Blockchain’ sector. @SECGov: Names Jamie Selway (@JSelway3) as Director of Trading & Markets Many issues related to ‘Crypto’ are the concern of @FINRA or @CFTC Great appointment!

Other Noteworthy Appointments

The regulator also confirmed the return of Erik Hotmire as Chief External Affairs Officer and Director of Public Affairs, effective June 16, 2025. Chairman Atkins believes Hotmire’s experience will significantly aid in transparently communicating the SEC’s priorities and actions to both market participants and investors. Hotmire previously served as a senior advisor and spokesperson to former SEC Chair Christopher Cox, and as a senior advisor to the SEC’s Division of Enforcement.

Additionally, Kurt Hohl has been appointed as Chief Accountant, bringing nearly four decades of accounting and auditing expertise. His appointment is effective July 7. Hohl has served as acting chief accountant since January 2025, concurrently holding the chief accountant position in the Division of Enforcement.

Chairman Atkins’s Vision for Digital Assets

Paul Atkins assumed leadership of the SEC on April 22, succeeding former Chair Gary Gensler. Since taking office, Atkins has consistently advocated for a more accommodating stance toward digital assets. This commitment was evident in March when the SEC convened its inaugural Crypto Task Force roundtable, a forum dedicated to discussing the future regulatory framework for digital assets.

Industry Reaction and Calls for Clarity

Industry experts have welcomed this potential shift. Miles Jennings, General Counsel for A16z Crypto, previously articulated criticisms of the prior administration’s approach to the industry. He argued that the previous strategy failed to achieve the SEC’s core objectives, including investor protection, capital formation, or the establishment of efficient markets. Jennings underscored the necessity for the agency to improve its regulatory methods, calling the previous approach a “clear failure,” particularly noting former Chair Gensler’s cautious stance and frequent classification of most cryptocurrencies as securities.

These recent leadership changes and the expressed commitment from Chairman Atkins suggest a new chapter for digital asset regulation, prioritizing dialogue and practical solutions to foster a more predictable and innovative market environment.