SEC Shifts Crypto Stance Emphasizes Few Tokens as Securities

The U.S. Securities and Exchange Commission (SEC) is shifting its approach to regulating crypto tokens, with Chair Paul Atkins stating that only a small number of digital assets qualify as securities. This marks a significant departure from the previous administration under Gary Gensler, who maintained that most crypto tokens fell under the SEC’s securities framework. Atkins emphasized that the classification of a token depends on the context of its sale and use, rather than its inherent structure [2]. His remarks suggest a more balanced regulatory strategy that could reduce legal uncertainty for crypto projects and foster innovation [4].

Atkins' position aligns with the launch of the President’s Digital Assets Group, an initiative aimed at clarifying and modernizing digital asset regulation. The group will play a central role in shaping how the SEC interprets and enforces securities laws in the crypto space [1]. Atkins also highlighted the importance of regulatory clarity and market structure over broad enforcement actions, signaling a shift toward a more nuanced approach [3]. His leadership also includes “Project Crypto,” which aims to streamline custody, trading, and token issuance protocols while maintaining investor protection [3].

The evolving regulatory landscape is also influenced by broader political developments. The President’s Working Group on Digital Assets recently released a report outlining strategic priorities for the administration, which Atkins stated will guide the SEC’s approach. Meanwhile, Congress is advancing the Digital Asset Market Clarity (CLARITY) Act, with bipartisan support expected as the Senate returns from recess [4]. These developments indicate growing consensus on the need for a structured regulatory environment for digital assets.

The contrast between Gensler’s enforcement-heavy strategy and Atkins’ more measured tone is stark. While the former administration pursued high-profile lawsuits against major platforms like Ripple and Coinbase, the current leadership appears focused on establishing clear rules. This transition could result in a more predictable and collaborative regulatory environment for market participants [5]. Industry observers see this as a positive step, with the potential to reduce the number of crypto projects subject to securities law enforcement [6].

As the President’s Digital Assets Group moves forward, the SEC’s evolving stance is expected to influence enforcement practices and the broader digital asset ecosystem. With a clearer regulatory framework on the horizon, the stage appears set for a more stable and structured environment for crypto innovation in the United States [6].

Source:

[1] SEC Chair Paul Atkins says they will launch the President's Digital Assets Group soon (https://www.cryptopolitan.com/atkins-announces-digital-assets-group-launch/)

[2] SEC Chair: 'There Are Very Few Tokens That Are Securities' (https://cointelegraph.com/news/tokens-securities-sec-chair-paul-atkins-wyoming)

[3] Most Crypto Tokens Should Not Be Treated as Securities ... (https://www.law.com/nationallawjournal/2025/08/19/most-crypto-tokens-should-not-be-treated-as-securities-sec-chair-says/)

[4] US president's working group issues report outlining key ... (https://www.lexology.com/library/detail.aspx?g=3ed0b155-232c-4176-9105-80fab1e802fd)

[5] SEC Moves Forward With Crypto Regulation Following ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1051991-20250820)

[6] US SEC unveils sweeping plans to regulate crypto (https://www.msn.com/en-us/money/markets/us-sec-unveils-sweeping-plans-to-regulate-crypto-here-s-what-you-need-to-know/ar-AA1JFKW0)