SEC Shifts Crypto Stance Emphasizing Few Tokens as Securities

The U.S. Securities and Exchange Commission (SEC) is undergoing a marked shift in its regulatory approach to cryptocurrencies under Chairman Paul Atkins. Speaking at the Wyoming Blockchain Symposium, Atkins emphasized that only a “very small number” of crypto tokens qualify as securities, distancing the agency from the previous administration’s enforcement-driven strategy. “The token itself is not a security, and probably not. In my opinion, very few tokens are securities,” he said, highlighting that the classification depends on how the token is presented and marketed to investors [2].

This statement aligns with the launch of the SEC’s “Project Crypto,” a multi-faceted initiative aimed at modernizing securities laws and integrating digital assets into the U.S. financial system. Atkins described the project as a step toward “embracing innovation” and ensuring American markets remain competitive in the global crypto landscape. The initiative includes efforts to streamline custody, trading, and token issuance frameworks, reflecting a broader push for regulatory clarity [5].

The SEC’s evolving stance has drawn positive reactions from industry observers. Bernstein’s analysis called the initiative “the boldest and most transformative vision ever put forth by an SEC chairman,” while Bitwise CIO Matt Hougan described it as a potential roadmap for the next five years [1]. These responses underscore the industry’s interest in a more predictable regulatory environment.

Atkins also announced the formation of the President’s Digital Assets Group, which is part of a larger effort to refine the legal and policy landscape surrounding digital assets. The group is expected to play a central role in shaping the SEC’s approach and is aligned with the President’s Working Group report on digital assets, a key document outlining strategic priorities for the sector [3]. This move signals a shift toward structured, rules-based regulation rather than broad enforcement actions.

The contrast between Atkins’ approach and that of his predecessor, Gary Gensler, is notable. Gensler’s tenure was marked by a broader interpretation of the Howey Test, which led to the classification of many crypto assets as securities. Atkins’ more measured stance suggests a recalibration of enforcement priorities and a focus on balancing innovation with investor protection [6].

As the SEC moves forward with these initiatives, market participants will be watching closely to see how these policies translate into real-world enforcement and regulatory guidance. The new approach, if maintained, could reduce legal uncertainty for innovators and create a more stable environment for the development of digital assets in the U.S.

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] 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)