SEC Shifting Crypto Stance Few Tokens Are Securities

US Securities and Exchange Commission (SEC) Chair Paul Atkins has signaled a major shift in the agency’s approach to crypto regulation, emphasizing that only a small number of digital tokens should be classified as securities. Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Atkins stated, “There are very few, in my mind, tokens that are securities, but it depends on what’s the package around it and how that’s being sold.” This position marks a departure from the broader interpretation under former SEC Chair Gary Gensler, who argued that the “vast majority” of crypto assets fell under securities law [1].

Atkins’ comments reflect a broader effort to redefine the SEC’s role in regulating digital assets, with a focus on creating clarity and encouraging innovation. He emphasized that the SEC would “plow forward” with its own regulatory framework, even as Congress moves toward passing a new crypto market structure bill. The SEC’s “Project Crypto” initiative aims to develop clear rules for token distributions, custody, and trading, which could help reduce ambiguity for market participants [2].

The shift in tone has been interpreted as part of a larger regulatory strategy to integrate crypto into the traditional financial system. Atkins has directed his staff to draft simple and straightforward regulations that address the unique nature of crypto tokens, suggesting that the SEC is moving away from a one-size-fits-all approach to securities classification [3]. This aligns with statements from the SEC indicating that “most crypto tokens are not securities by nature,” a position that challenges the long-standing application of the Howey test [4].

At the same time, the evolving regulatory environment is creating a clearer division of responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC). Reports suggest that the SEC will focus on tokens classified as securities, while the CFTC will regulate those treated as commodities. This division could streamline oversight and reduce regulatory overlap [5].

Atkins has also outlined a strategy that prioritizes innovation and provides exemptions for tokens that do not meet the criteria for securities. This approach signals the SEC’s intent to support the development of new financial products while ensuring investor protections remain in place [6]. The shift could encourage more institutional investors to enter the market and promote broader adoption of digital assets.

The regulatory changes align with broader political efforts to establish a favorable environment for crypto innovation in the U.S. The House has already passed the Digital Asset Market Clarity (CLARITY) Act, and the Senate Banking Committee is expected to build on this legislation. These developments suggest a future where tokens could benefit from regulatory exemptions similar to those available for traditional financial products [7].

As the SEC moves forward with its revised approach, market participants are closely watching for further guidance on how to interpret and comply with the new framework. The agency’s evolving stance reflects a growing recognition that the crypto market is maturing and requires a regulatory environment that supports innovation without compromising investor confidence.

Source:

[1] Cointelegraph, [https://cointelegraph.com/news/tokens-securities-sec-chair-paul-atkins-wyoming](https://cointelegraph.com/news/tokens-securities-sec-chair-paul-atkins-wyoming)

[2] Decrypt, [https://decrypt.co/335848/sec-chair-atkins-doubles-down-project-crypto-embrace-innovation](https://decrypt.co/335848/sec-chair-atkins-doubles-down-project-crypto-embrace-innovation)

[3] Davis, [https://www.davispolk.com/insights/client-update/cryptos-integration-traditional-financial-system-underway](https://www.davispolk.com/insights/client-update/cryptos-integration-traditional-financial-system-underway)

[4] AInvest, [https://www.ainvest.com/news/sec-unveils-pro-crypto-framework-boost-innovation-clarity-2508/](https://www.ainvest.com/news/sec-unveils-pro-crypto-framework-boost-innovation-clarity-2508/)

[5] Mitrade, [https://www.mitrade.com/au/insights/news/live-news/article-3-1051991-20250820](https://www.mitrade.com/au/insights/news/live-news/article-3-1051991-20250820)

[6] Decrypt, [https://decrypt.co/news-explorer?pinned=1134159&title=sec-chair-atkins-presents-new-digital-assets-regulation-strategy-focusing-on-innovation-exemptions-for-tokens](https://decrypt.co/news-explorer?pinned=1134159&title=sec-chair-atkins-presents-new-digital-assets-regulation-strategy-focusing-on-innovation-exemptions-for-tokens)

[7] Medium, [https://medium.com/@dominalt/crypto-is-about-to-change-forever-thanks-to-the-cftc-6d7645a56477](https://medium.com/@dominalt/crypto-is-about-to-change-forever-thanks-to-the-cftc-6d7645a56477)