SEC Chairman Paul Atkins Declares Most Crypto Assets Are Not Securities in Landmark Policy Shift
Date: 2025-08-01
SEC’s Atkins: ‘Most Crypto Assets Are Not Securities’ Under Bold New Vision
WASHINGTON, D.C. — In a striking shift from previous regulatory stances, Securities and Exchange Commission (SEC) Chairman
Paul Atkins declared Thursday that "most crypto assets are not securities," introducing a bold new framework aimed at revitalizing the U.S. blockchain sector.
Speaking at the America First Policy Institute, Atkins unveiled "Project Crypto", a commission-wide initiative to modernize existing securities regulations and encourage innovation in the digital asset space. The plan aligns with President Donald Trump’s recently issued policy roadmap on blockchain and digital finance.
"I have directed the commission staff to draft clear and simple rules of the road for crypto asset distributions, custody, and trading for public notice and comment," said Atkins.
Atkins emphasized that while Congress continues to work on broader crypto legislation, the SEC would act swiftly to provide interpretative guidance, exemptions, and regulatory flexibility. These measures aim to ensure outdated financial rules don't stifle emerging technologies or drive innovation offshore.
“We will reshore the crypto businesses that fled our country, particularly those that were crippled by the previous administration’s regulation-by-enforcement crusade and Operation Chokepoint 2.0,” he added.
Reversal from the Gensler Era
Atkins' remarks represent a dramatic departure from his predecessor Gary Gensler, who previously asserted that the majority of crypto tokens qualify as securities under the Howey Test. In contrast, Atkins now acknowledges that the uncertainty around that classification has burdened the industry.
“Despite what the SEC has said in the past, most crypto assets are not securities,” he stated. “But confusion over the Howey Test has led some innovators to prophylactically treat all crypto assets as such.”
To address this, Atkins committed the agency to producing clear and predictable guidelines for assessing whether a digital asset constitutes a security or falls under a different regulatory category.
He also proposed purpose-fit disclosures, exemptions, and safe harbors for crypto fundraising mechanisms such as initial coin offerings (ICOs), airdrops, and network rewards—mechanisms often demonized under earlier frameworks.
“Even when a token is deemed a security,” he said, “that should not be a scarlet letter.”
Toward a Golden Age of Digital Assets
The initiative comes as part of Trump’s broader vision to usher in a “golden age” for digital assets in the U.S., positioning the country as a hub for innovation rather than a hostile regulatory battleground.
In line with this new direction, platforms in the space are beginning to see renewed interest. For example, cutting-edge solutions such as a crypto prop trading platform, next-generation virtual cards, and high-yield staking ecosystems are gaining traction among both institutional and retail users.
Atkins’ approach signals a foundational change for how the SEC will interact with blockchain technologies—promising clarity where there was once uncertainty, and opportunity where there was once regulatory gridlock.
With "Project Crypto," the SEC may finally be opening the door to an era where regulation supports, rather than hinders, America’s role in the digital financial future.
