In a major policy shift, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has clarified that only a very small number of cryptocurrencies should be classified as securities. His stance marks a sharp departure from the stricter, anti-industry approach taken by his predecessor, Gary Gensler.
Most Tokens Are Not Securities
Speaking at the Wyoming Blockchain Symposium 2025, Atkins explained that the classification of cryptocurrencies depends more on how they’re packaged and sold rather than on the tokens themselves.
“Just the token itself is not necessarily a security — and probably not,” he said. “There are very few, in my view, tokens that are securities. But it depends on the package around it and how it’s being sold.”
This perspective stands in stark contrast to Gensler’s approach, which treated the majority of tokens as securities under U.S. law. That stance led to widespread enforcement actions and a regulatory climate many in the industry described as hostile.
A Friendlier Regulatory Approach
Since taking over in April, Atkins has repeatedly stressed the need for regulatory clarity. He has also sought to create a more welcoming environment for the crypto industry, aiming to end years of uncertainty. His comments build on recent positive developments, including the launch of Project Crypto.
What Is Project Crypto?
Unveiled in July, Project Crypto is an SEC-led initiative to establish clearer rules for the crypto industry, covering areas such as token offerings, custody, and trading practices. The project’s goal is to give businesses practical guidance while ensuring regulations do not hold back innovation.
Atkins also noted that the SEC is prepared to use interpretative guidance, exemptions, and other tools to modernize outdated financial rules that don’t fit today’s digital asset landscape.
Push for U.S. Leadership in Digital Assets
The SEC’s friendlier stance aligns with the Trump administration’s efforts to keep the U.S. at the forefront of global digital asset markets. A separate Working Group on Digital Assets is developing a unified framework to encourage innovation, while Congress has passed several key bills — including the GENIUS Act, the first federal framework for stablecoins.
Future-Proofing Crypto Regulation
Atkins emphasized that the SEC’s role is not just to provide clarity now, but also to protect the industry from regulatory overreach in the future.
“We must craft a framework that future-proofs the crypto markets against regulatory mischief,” he said. “I look forward to working with my counterparts across the Administration and Congress to get the job done.”
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