SEC Chair Upends Crypto Policy, Says “Very Few” Are Securities

• Atkins says only a small number of tokens should be treated as securities.
• SEC’s Project Crypto aims to modernize markets with on-chain assets.
• Analysts see the initiative as a major shift from past SEC leadership.

The new head of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, has reinforced his stance that only a small number of digital tokens should be classified as securities. 

Speaking Tuesday at the Wyoming Blockchain Symposium, Atkins stated that “very few” tokens meet the definition, stressing that classification depends on how an asset is packaged and sold.

Atkins emphasized that the commission’s approach is shifting away from the idea that tokens are securities by default. He explained that “just the token itself is not necessarily the security, and probably not.”

The remarks signal a historic reversal from the position of former SEC Chair Gary Gensler, ending the era of forcing crypto into a “Procrustean Bed” of outdated rules.

The New Blueprint: SEC’s “Project Crypto”

This new philosophy is the backbone of the SEC’s recently launched “Project Crypto,” an ambitious initiative aimed at modernizing securities laws for blockchain-based finance. The Chair described the project as a move to help bring traditional assets such as stocks, bonds, and currencies onto distributed ledgers. Here is our in-depth coverage on the topic: SEC Brings Out “Project Crypto” to Make U.S. the Blockchain Capital of the World.

In outlining Project Crypto’s goals, Atkins said the regulator wants to establish a structure that embraces innovation while safeguarding financial stability. “We must craft a framework that future-proofs the crypto markets against regulatory mischief,” Atkins wrote in a post on X after his symposium remarks.

Industry analysts have taken note of the initiative. Research firm Bernstein described Project Crypto as “the boldest and the most transformative crypto vision ever laid out by a sitting SEC chair.” The firm added that the program has the potential to “rewrite the rules of Wall Street.”

Market participants have also highlighted the broader implications of the SEC’s shift. Bitwise Chief Investment Officer Matt Hougan called Project Crypto a “roadmap for investors over the next five years,” reflecting Atkins’ suggestion that all major asset classes may eventually be recorded on-chain.

Atkins reiterated during his appearance that the SEC intends to move quickly in implementing the initiative. “It is a new day, especially for this industry,” he said, adding that the commission now seeks to prioritize innovation.