SEC Shifts Crypto Stance Most Tokens Not Securities

SEC Chair Paul Atkins has indicated a significant shift in the U.S. Securities and Exchange Commission’s (SEC) approach to regulating crypto tokens, stating that only a small number qualify as securities. Delivering remarks at the Wyoming Blockchain Symposium on August 19, 2025, Atkins emphasized that the SEC will not automatically classify tokens as securities and will instead evaluate how they are structured, sold, and packaged [1]. “There are very few, in my mind, tokens that are securities,” he said, highlighting the importance of context in determining a token’s regulatory status [2].

This stance contrasts sharply with the approach of former SEC Chair Gary Gensler, who argued that the vast majority of tokens met the definition of a security under the Howey Test [3]. Under Gensler, the SEC’s enforcement-heavy strategy created considerable tension with the crypto industry, which criticized the lack of clear regulatory guidelines. Atkins, however, has signaled a more balanced and innovation-friendly approach, aligning the SEC more closely with industry expectations.

The new direction is part of the SEC’s broader “Project Crypto” initiative, launched in July, which aims to modernize securities laws to better accommodate digital assets [4]. According to the SEC Chair, the initiative represents a commitment to innovation and is designed to help the U.S. financial system evolve toward on-chain solutions. “It is a new day, especially for this industry,” he stated. “We are about innovation. Now we want to embrace innovation” [2].

Atkins’ comments also come in the wake of the SEC’s recent legal victory in the long-running case against Ripple, further reinforcing the agency’s evolving regulatory philosophy [7]. The outcome of that case has been seen as a landmark moment for the crypto industry, offering some clarity on how the SEC may apply the Howey Test in future cases. With the XRP lawsuit concluded, the regulatory landscape appears to be moving toward greater predictability.

At the same time, Congress is also advancing legislative efforts to provide clarity on digital asset regulation. The U.S. House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act in July, and Senate Banking Committee Chair Tim Scott has suggested that bipartisan support may allow for further legislative progress when the Senate returns from recess on September 3 [6]. Atkins has welcomed these efforts but has also made it clear that the SEC will continue to shape its own regulatory framework independently of legislative developments.

While industry participants have largely praised the shift in tone, some analysts caution that the lack of a formal framework may still leave ambiguity in token classification [8]. As the SEC moves forward with Project Crypto, market participants will likely continue to seek further guidance on how specific tokens will be treated under the law and what enforcement standards will apply in the absence of comprehensive legislation.

Sources:

[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] MEXC, [https://www.mexc.co/en-IN/news/sec-chair-paul-atkins-rejects-securities-label-for-most-crypto-tokens/67755](https://www.mexc.co/en-IN/news/sec-chair-paul-atkins-rejects-securities-label-for-most-crypto-tokens/67755)

[3] Law.com, [https://www.law.com/nationallawjournal/2025/08/19/most-crypto-tokens-should-not-be-treated-as-securities-sec-chair-says/](https://www.law.com/nationallawjournal/2025/08/19/most-crypto-tokens-should-not-be-treated-as-securities-sec-chair-says/)

[4] AInvest, [https://www.ainvest.com/news/sec-shifts-crypto-stance-emphasizing-tokens-securities-2508/](https://www.ainvest.com/news/sec-shifts-crypto-stance-emphasizing-tokens-securities-2508/)

[7] Coinpedia, [https://coinpedia.org/crypto-live-news/sec-chair-says-most-crypto-tokens-are-not-securities/](https://coinpedia.org/crypto-live-news/sec-chair-says-most-crypto-tokens-are-not-securities/)

[8] CCN.com, [https://www.ccn.com/news/crypto/sec-chair-paul-atkins-crypto-tokens-securities-clarity-soon-project-crypto/](https://www.ccn.com/news/crypto/sec-chair-paul-atkins-crypto-tokens-securities-clarity-soon-project-crypto/)