SEC Chair Atkins Signals Major Shift: "Very Few Tokens Are Securities"

Securities and Exchange Commission Chair Paul Atkins has signaled a dramatic departure from his predecessor's approach to cryptocurrency regulation, declaring that "very few" crypto tokens should be considered securities. Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Atkins outlined how the SEC's new "Project Crypto" initiative will fundamentally change how the agency evaluates digital assets, emphasizing that tokens themselves are not inherently securities.

The new chair's position marks a stark contrast to former SEC Chair Gary Gensler's stance, who maintained that the "vast majority" of crypto assets qualified as securities under the Howey test. Atkins explained that the SEC will focus on the broader context surrounding token offerings rather than the tokens themselves, stating that classification depends on "what's the package around it and how that's being sold." This shift could significantly reduce regulatory pressure on crypto companies that faced enforcement actions under Gensler's leadership.

Atkins' comments come as the SEC moves forward with its regulatory framework while Congress simultaneously works on comprehensive crypto legislation. The House of Representatives passed the Digital Asset Market Clarity Act in July, and Senate Banking Committee leaders have indicated they will build upon this foundation to create their own version of market structure legislation when they return from recess on September 2.

The regulatory landscape appears increasingly favorable for the crypto industry, with Senate Banking Committee Chair Tim Scott suggesting that as many as 18 Democrats could join Republicans in supporting market structure legislation. This bipartisan momentum, combined with Atkins' more permissive approach to token classification, signals a potentially transformative period for cryptocurrency regulation in the United States.