SEC Chair Paul Atkins says solely few tokens qualify as securities, contrasting Gensler and aligning with Congress on crypto legal guidelines.
U.S. Securities and Trade Fee (SEC) Chair Paul Atkins has taken a friendlier stance towards cryptocurrency than his predecessors.
In line with particulars of a speech he gave on the Wyoming Blockchain Symposium, Atkins mentioned that only a few crypto tokens ought to be thought of securities.
He defined that tokens themselves are “most likely not” securities. As a substitute, classification depends upon how a token is packaged and bought.
How Atkins Views Token Classification
Atkins instructed the viewers in Jackson Gap that the SEC is not going to assume each token is a safety by default. As a substitute, the company will look at the complete context of every providing.
“There are only a few, in my thoughts, tokens which can be securities,” he mentioned. “It depends upon what the package deal is round it and the way that’s being bought.”
🚨SEC Chair Paul Atkins says “only a few” tokens ought to be labeled as securities! 🙌🏼
This HUGE shift comes simply days after the XRP lawsuit formally ended—a landmark second for crypto readability! #XRP #XRPCommunity pic.twitter.com/IxsW1miNMM
— BULLRUNNERS (@BullrunnersHQ) August 20, 2025
It is a main change from the view of former SEC Chair Gary Gensler. For context, Gensler typically mentioned the “overwhelming majority” of tokens have been securities below the Howey take a look at. Atkins is now pushing the SEC in a unique path:
One which leans extra towards fostering innovation reasonably than proscribing it.
Challenge Crypto and Market Modernisation
Final month, the SEC launched Challenge Crypto. Challenge Crypto is an initiative designed to replace securities legal guidelines to be extra welcoming for buyers and issuers.
Atkins described it as an effort to assist U.S. monetary markets transfer on-chain.
“It’s a new day, particularly for this business,” Atkins mentioned. “We’re about innovation. Now we wish to embrace innovation.”
#BREAKING:🚨 SEC Chair Paul S. Atkins simply unveiled “Challenge Crypto,” a blueprint to make the U.S. the crypto capital of the world and transfer the usfinancial markets on-chain. 👀👇🏼 pic.twitter.com/RwkZmbQ9dK
— Subjective Views (@subjectiveviews) July 31, 2025
Challenge Crypto has already drawn consideration from analysts and business leaders. In line with Bernstein analysts, it is likely one of the most transformative crypto visions ever proposed by a sitting SEC chair.
Bitwise CIO Matt Hougan described the challenge as a roadmap for the subsequent 5 years of investing, and likewise instructed that shares, bonds and even {dollars} might ultimately transfer on-chain.
Congress Prepares to Step In
Whereas Atkins is setting the tone on the SEC, lawmakers are additionally transferring to make clear crypto regulation. The U.S. Home of Representatives handed the Digital Asset Market Readability (CLARITY) Act in July.
Leaders within the Senate Banking Committee have mentioned they plan to construct on the invoice when the Senate returns from recess on September 3.
Senate Banking Committee Chair Tim Scott indicated that as many as 18 Democrats could be part of Republicans to assist new market construction laws. That stage of backing might push a legislation by way of by the tip of the yr.
Atkins has welcomed the trouble, however he additionally made clear that the SEC plans to maintain transferring ahead with its initiatives. “We should craft a framework that future-proofs the crypto markets towards regulatory mischief,” he mentioned in a publish on X after the symposium.
Distinction With the Earlier Administration
The change below Atkins implies that the SEC is certainly transferring away from the SEC’s method to regulating digital property in the course of the Biden administration.
Gary Gensler, who chaired the company till January, argued that the majority tokens have been securities and will fall below SEC oversight. His method was one of many main sources of friction between the company and the crypto business, which accused the SEC of “regulating by enforcement” as an alternative of providing clear guidelines.
General, the Atkin’s stance might open the door to many new developments throughout the crypto house, together with ETF approvals and new product baskets that might utterly change the best way buyers method digital property.