Few Crypto Tokens as Securities

On August 20, U.S. SEC Chairman Paul Atkins announced in Washington D.C. that only a few crypto tokens should be identified as securities, signaling a regulatory shift.

This adjustment may boost U.S. funding for digital assets, especially ICOs, mitigating legal uncertainties and spurring crypto market innovation.

SEC’s Bold Move: Most Crypto Tokens Escape Securities Label

SEC Chairman Paul Atkins announced a major regulatory shift in Washington D.C., stating most crypto assets will not be designated as securities. This aligns with interpretive policy to modernize crypto regulation and encourage industry growth. Hester Peirce supports these changes, leading the SEC Crypto Task Force. The U.S. crypto market expects to thrive under these reduced regulatory constraints, fostering innovation and increasing funding avenues.

SEC’s new stance reduces legal risk for projects involving tokens like ETH and BTC, which have struggled under prior scrutiny. Additionally, ICOs and DeFi initiatives are anticipated to face fewer barriers, encouraging innovation.

“Most crypto assets are not securities. This marks a shift away from the old regulation-by-enforcement approach, with a commitment to public rulemaking, safe harbors, and a level playing field for American blockchain innovators.” – Paul Atkins

Market stakeholders, including major exchanges, have welcomed the news. Paul Atkins emphasized a balanced framework with public rule-making and safe harbors. While sentiment is largely positive, key figures await final guidelines to understand the specific impacts.

Historical Context Reflects Major Shift in Crypto Regulation

Did you know? SEC’s shift mirrors the 2018 Hinman speech, establishing a clearer pathway for crypto governance under federal guidelines.

According to CoinMarketCap, Ethereum (ETH) was last quoted at $4,193.72 with a market cap of $506.21 billion. The token’s market dominance is at 13.24%. Recent trends show prices fell 1.06% in the last 24 hours but surged 72.56% over 60 days.

Coincu’s research indicates that removing stringent classification as securities may open doors for more crypto ecosystem development, expanding U.S. market influence and reducing barriers for project compliance to enhance global competitiveness.