Trump-Era SEC Chief Signals Most Crypto Tokens Not Securities Under Current Law

The U.S. Securities and Exchange Commission’s (SEC) former Trump-era chair, in remarks made at the Wyoming Blockchain Symposium, has signaled that the majority of crypto tokens may not qualify as securities under existing law. The statement, delivered under the agency’s “Project Crypto” initiative, represents a pivot away from the expansive regulatory approach taken during the tenure of former SEC Chair Gary Gensler. The new interpretation emphasizes that the classification of a token as a security hinges on how it is marketed and structured, rather than its inherent nature [1].

This shift in tone and strategy suggests a more nuanced and flexible application of securities law to the crypto space. The former SEC chair argued that only a “very few” tokens could be classified as securities, a stark contrast to Gensler’s repeated assertion that the “vast majority” of digital assets fell under the SEC’s purview. This departure underscores the potential for a lighter regulatory touch, with oversight concentrated on fundraising methods and token offerings rather than the tokens themselves [1].

The timing of the remarks is significant, as the SEC continues to operate under a new leadership structure following Gensler’s departure. The agency’s evolving stance is aligned with broader political and legislative momentum to define a more structured regulatory framework for digital assets. In July, the U.S. House passed the Digital Asset Market Clarity (CLARITY) Act, which aims to create a legal foundation for the industry. With Senate leaders planning to build on this legislation when the session resumes, the prospect of a unified, bipartisan approach to crypto regulation is gaining traction [1].

Industry observers have interpreted the SEC’s evolving position as a potential boon for innovation. A more targeted regulatory focus could reduce the risk of broad enforcement actions, allowing developers and startups greater freedom to experiment with new token models and blockchain applications. However, the absence of formal guidance means that uncertainty remains for market participants. The final direction of U.S. crypto policy is expected to hinge largely on the outcome of ongoing legislative efforts, which could provide the clarity needed for long-term investment and development in the space [1].

The Trump-era SEC chair’s remarks have been welcomed as a sign that the agency is recalibrating its approach to digital assets, with a focus on proportionality and adaptability. This shift reflects a growing recognition within Washington that rigid regulatory categorizations may stifle innovation. As the SEC and Congress continue to refine the regulatory landscape, the industry is bracing for a period of both opportunity and transition [1].

Sources:

[1] Coindoo - [https://coindoo.com/trump-era-sec-chief-declares-majority-of-crypto-tokens-off-the-hook/](https://coindoo.com/trump-era-sec-chief-declares-majority-of-crypto-tokens-off-the-hook/)

[2] Coindoo - [https://coindoo.com/category/altcoins/](https://coindoo.com/category/altcoins/)