SEC Chair Paul Atkins: Most Crypto Tokens Are Not Securities
What the SEC’s New Approach Means
In a landmark policy shift, U.S. Securities and platform Commission (SEC) Chair Paul Atkins announced that “most crypto tokens are not securities,” signaling the agency’s intent to overhaul its regulatory stance on digital assets. Speaking at the OECD Roundtable in Paris, Atkins outlined Project Crypto, a sweeping plan to modernize U.S. securities law for blockchain-based markets.
“It is a new day at the SEC,” Atkins said. “Policy will no longer be set by ad hoc enforcement actions. We will provide clear, predictable rules of the road so that innovators can thrive in the United States.” The new framework aims to consolidate oversight of crypto trading, lending, and staking under a single regulatory umbrella.
Investor Takeaway
How Project Crypto Could Reshape Markets
Under Project Crypto, platforms will be allowed to operate as “super-apps” that integrate trading, lending, staking, and custody services. Atkins emphasized that regulation should provide “the minimum effective dose” to protect investors without stifling entrepreneurs. This stance contrasts sharply with the prior administration’s enforcement-first approach, which had driven firms offshore.
The initiative follows a “bold blueprint” from the President’s Working Group on Digital Asset Markets and aligns U.S. policy more closely with international peers. Atkins specifically praised the EU’s Markets in Crypto-Assets (MiCA) regime, calling it a comprehensive framework from which U.S. regulators can learn.
Global Regulatory Divergence
Atkins also highlighted the importance of cross-border coordination, urging regulators to cooperate in shaping global digital asset markets. His remarks come as the European Banking Authority (EBA) finalized stringent capital rules requiring EU banks to set aside hefty buffers for unbacked crypto like BTC and Ether. Classified under “Group 2b,” such assets now carry a 1,250% risk weight.
The EBA’s conservative stance contrasts with other jurisdictions. In the U.S., the FDIC recently allowed banks to engage in crypto activities without prior approval. Switzerland, meanwhile, has updated its distributed ledger technology (DLT) laws to support custody and stablecoin guarantees. This divergence underscores the strategic choices facing policymakers as institutional adoption accelerates.
Investor Takeaway
What’s Next for U.S. Crypto Oversight?
The SEC’s pivot may pave the way for more mainstream financial products, including crypto ETFs and regulated staking platforms. Relatedly, the agency recently postponed decisions on Bitwise and Grayscale’s crypto ETF applications to November, suggesting a cautious but forward-looking approach.
For investors, Atkins’ comments mark the clearest sign yet that U.S. regulators are moving toward rules-based clarity rather than enforcement by litigation. If Project Crypto delivers on its promise, it could anchor the next era of institutional adoption in the United States while harmonizing with Europe’s MiCA regime.
