As the United States sets the tone for global cryptocurrency regulation, central banks and markets worldwide are closely monitoring developments following the Senate’s confirmation of Paul Atkins as the new chair of the US Securities and Exchange Commission (SEC).

Replacing Gary Gensler, a known crypto skeptic, Atkins brings a pro-crypto stance that could dismantle longstanding regulatory barriers. With personal stakes of up to $1 million (R19m) in crypto firms Securitize and Anchorage Digital, plus a $1m to $5m investment in a crypto fund, Atkins’ leadership signals a seismic shift - not just for the US, but for the world navigating this uncharted terrain.

Amid market turbulence, his appointment coincides with speculation that the "Magnificent 7" -Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla - could soon embrace stablecoins, potentially reigniting the crypto market.

This transition follows Acting Chair Mark Uyeda’s interim tenure since January 20, during which the SEC dropped high-profile cases and launched a Crypto Task Force. The task force’s April 11 webinar, Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading, featuring industry leaders like Coinbase’s Gregory Tusar and Uniswap Labs’ Katherine Minarik, aims to forge a comprehensive regulatory framework. Additional meetings are slated for April 25 (Know Your Custodian:), May 12 (Tokenization), and June 6 (DeFi and the American Spiritt), all accessible via the SEC website (https://www.sec.gov).

The SEC commissioners welcomed Atkins in a statement on Wednesday, saying, “A veteran of our Commission, we look forward to him joining with us, along with our dedicated staff, to fulfill our mission on behalf of the investing public.”

Regulatory framework

Crypto’s momentum is building beyond the SEC. New York Attorney General Letitia James urged Congress on April 9 to pass a federal regulatory framework, Reuters reports. In a letter to Senate Majority Leader John Thune and House Speaker Mike Johnson, James called for crypto firms to register with a federal agency, set token listing standards, and require stablecoin issuers to maintain a US presence with assets like US Treasuries held in American banks.

Her push aligns with Congress’s likely passage of a stablecoin bill - the first of its kind. Stablecoins, pegged to assets like the US dollar to minimize volatility, are central to this shift.

Last month, the SEC approved Figure Markets’ YLDS, the first interest-bearing stablecoin registered as a security, offering a 3.85% yield. Unlike Tether (USDT) or USD Coin (USDC), which retain interest from reserves, YLDS distributes daily returns.

This regulatory evolution could ignite the crypto market, with the “Magnificent 7” - Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla - poised to cash in.

Cardano founder Charles Hoskinson told CNBC’s Beyond The Valley on Thursday that Bitcoin could hit $250 000 this year as tech giants enter the space, driven by stablecoin legislation and the Digital Asset Market Structure and Investor Protection Act, both advancing through Congress.

Hoskinson told CNBC, ″[The crypto market] will stall for probably the next three to five months, and then you’ll have a huge wave of speculative interest come, probably [in] August or September, into the markets, and that’ll carry through probably another six to 12 month.”

Hoskinson said the crypto market will be “reignited” by these factors, in particular the passing of the regulation and the adoption of stablecoins by the Magnificent 7.

Binance CEO Richard Teng, @_RichardTeng, echoed this volatility on social media X, noting that trade protectionism is shaking global markets, with crypto feeling the ripple effects.

This environment could accelerate interest in crypto as a non-sovereign store of value, he said.

"There's been a lot of discussion about the recent tariff escalation, and I want to share my perspective on what this means for crypto markets both now and in the long term. The resurgence of trade protectionism is introducing significant volatility across global markets - and crypto is no exception.

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