SEC Shifts Crypto Stance Only Few Tokens Classified as Securities

The U.S. Securities and Exchange Commission (SEC) is shifting its approach to regulating cryptocurrencies, with Chairman Paul Atkins asserting that only a small number of digital tokens should be classified as securities [1]. This marks a notable departure from the broader interpretation previously championed under former SEC Chair Gary Gensler, which led to most cryptocurrencies being labeled as securities under the Howey Test [2].

Atkins made these remarks during a speech at the SALT Wyoming Blockchain Conference, where he emphasized a more nuanced, case-by-case evaluation of whether a crypto asset meets the definition of a security [3]. The SEC has internally branded this strategy as "Project Crypto," aiming to curb regulatory overreach while still prioritizing investor protection and fostering innovation in the digital asset space [4].

The new stance also affects the division of regulatory responsibilities between federal agencies. The SEC is expected to focus on tokens that clearly meet the criteria for a security, while the Commodity Futures Trading Commission (CFTC) will handle those classified as commodities [5]. This realignment could help streamline enforcement and clarify the roles of different regulators within the evolving crypto landscape.

Atkins’ comments have been viewed as indicative of broader legislative shifts, particularly in relation to the proposed Clarity Act [6]. Although the bill remains pending, its framework aligns with the SEC’s current direction by proposing clearer definitions for different types of tokens [7]. This could help reduce legal ambiguity and potentially encourage institutional investment in the sector.

The SEC’s new approach has drawn mixed reactions from industry participants and legal observers. While some see it as a positive step toward encouraging innovation, others remain cautious due to past inconsistencies in regulatory interpretation [8]. Under Gensler, the SEC had taken a broad view, suggesting most crypto assets were securities, whereas Atkins has criticized that approach as overly rigid.

Moving forward, the SEC plans to issue more detailed guidance under Project Crypto, including criteria for evaluating a token’s structure, use case, and economic features to determine its classification [9].

Source:

[1] Coindoo - Trump-Era SEC Chief Declares Majority of Crypto Tokens...

https://coindoo.com/trump-era-sec-chief-declares-majority-of-crypto-tokens-off-the-hook/

[2] Moomoo - 证券交易委员会主席：只有少数加密货币应被视为证券

https://www.moomoo.com/hans/news/flash/20930069/sec-chair-only-a-small-number-of-cryptocurrencies-should

[3] Menafn - SEC Chair Atkins Reveals: Only A Few Tokens Qualify As Securities!

https://menafn.com/1109950038/SEC-Chair-Atkins-Reveals-Only-A-Few-Tokens-Qualify-As-Securities

[4] Mitrade - SEC Moves Forward With Crypto Regulation Following...

https://www.mitrade.com/insights/news/live-news/article-3-1051991-20250820

[5] AOL.com - The SEC Wants to Supercharge Super-Apps. Here's What...

https://www.aol.com/sec-wants-supercharge-super-apps-104500030.html

[6] Medium - Crypto Is About to Change FOREVER… Thanks to the CFTC!

https://medium.com/@dominalt/crypto-is-about-to-change-forever-thanks-to-the-cftc-6d7645a56477

[7] AInvest - Bitcoin News Today: SEC Chair Paul Atkins Highlights...

https://www.ainvest.com/news/bitcoin-news-today-sec-chair-paul-atkins-highlights-clear-digital-asset-regulation-wyoming-event-2508/

[8] Crypto - SEC Chair Atkins: There are very few tokens that...

https://cryptonews.net/news/legal/31464122/

[9] AOL.com - The Total Market Cap for All Cryptocurrencies Just Passed...

https://www.aol.com/total-market-cap-cryptocurrencies-just-083000374.html