SEC Chairman Paul Atkins Declares Most Crypto Tokens Aren’t Securities

On August 20, U.S. SEC Chairman Paul Atkins announced that most crypto tokens will not be classified as securities, signaling a regulatory shift under ‘Project Crypto.’

The shift eases regulatory pressure on major cryptocurrencies like Bitcoin and Ethereum, potentially boosting DeFi activity and enhancing U.S.-based digital asset innovation.

Atkins’ Announcement Reclassifies Crypto Tokens

In a pivotal move, U.S. SEC Chairman Paul Atkins, announced that most crypto assets will not be classified as securities. This shift aligns with his pro-market stance and is supported by Commissioner Hester Peirce through “Project Crypto.”

This change reduces SEC jurisdiction over crypto tokens, including Bitcoin and Ethereum, attracting positive feedback from crypto advocates. By planning safe harbor provisions and exemptions, the SEC aims to foster innovation while ensuring clarity.

Paul S. Atkins, Chairman, SEC, “Most crypto assets are not securities.” – CoinCentral

SEC’s New Strategy Sparks Market Optimism

Did you know? Under Chairman Gary Gensler, the SEC classified most tokens as securities, enforcing strict regulations. This led to many enforcement actions and a risk-averse market environment.

Bitcoin (BTC), currently priced at $113,104.83, has a market cap of $2.25 trillion, with a 24-hour trading volume of $72.99 billion per CoinMarketCap. Over the last 30 days, Bitcoin has seen a slight decline of 3.30%, yet a 9.49% gain over 60 days, reflecting changes with market developments.

The Coincu research team suggests a more predictable regulatory environment might encourage substantial inflows of institutional capital into the crypto market. They foresee potential growth in market innovation and a more dynamic financial landscape for U.S.-based crypto businesses.