Ripple CEO Brad Garlinghouse supports the SEC’s new enforcement strategy under Paul Atkins, calling it a long-term crypto strategy the industry needed. He criticized Gary Gensler’s approach for stifling innovation. The SEC’s ACT strategy—Advance, Clarify, Transform—aims to modernize regulations and boost clarity. The agency has approved several crypto ETFs and softened its stance on crypto securities. Traders are weighing the risk-to-reward ratio as regulatory clarity improves.

Something is clearly shifting inside the U.S. Securities and Exchange Commission, and Ripple CEO Brad Garlinghouse isn’t staying quiet about it. Responding to recent comments from Paul Atkins, he described the new direction as a long-overdue reset, especially after what he sees as a difficult period for the crypto industry under earlier leadership.

From “War on Crypto” to a Reset

Garlinghouse directly contrasted Atkins’ approach with former SEC Chair Gary Gensler, saying the agency had drifted away from its core mission of protecting investors. Instead, he argues, it leaned heavily into enforcement, creating confusion and pushing innovation out of the U.S.

In his view, that period felt like a “war on technology,” with courts eventually stepping in to challenge parts of the SEC’s stance. Now, he sees things moving in a very different direction.

Moreover, this includes better coordination with the Commodity Futures Trading Commission and clearer distinctions between securities and commodities. The goal is simple: reduce confusion and make the U.S. competitive again in crypto.

Having said that, even before Atkins was officially confirmed, signs of change were already visible. Under interim leadership, the SEC launched a crypto task force led by Hester Peirce and began dropping major enforcement actions, including cases against Coinbase.

In the last 12 months, the agency has also approved multiple crypto ETFs and eased its stance on classifying most cryptocurrencies as securities, a major crypto win.

What Atkins Is Actually Changing

During his interview with CNBC’s Squawk Box, Atkins laid out a clearer roadmap, and this is where the tone really takes a fresh turn. He says the SEC is moving away from that enforcement-first style and into something more structured, what he calls the ACT strategy: Advance, Clarify, Transform.

“And so, basically, we’re instituting a strategy. That I’m calling our ACT strategy, advance, clarify, and transform.”

“Advance” means embracing new tech like crypto instead of pushing it away. “Clarify” is about finally giving the market clear rules, something the industry has been asking for years. And “Transform” focuses on updating outdated systems so markets, including IPOs, can actually keep up with modern finance.

Why This Matters Now

What makes this stand out is how aligned it feels with what the crypto industry has been pushing for: clear rules, less guesswork, and room to innovate. Garlinghouse summed it up by calling Atkins a “breath of fresh air,” which says a lot given the tension between regulators and crypto over the past few years.

Instead of pushing crypto out, the SEC now seems to be trying to bring it back in, with clearer guidelines and a more open approach. If that continues, it could finally give the industry the stability it’s been waiting for.

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