SEC Chair Paul Atkins Reframes Crypto Tokens as Securities
US Securities and Exchange Commission (SEC) Chair Paul Atkins suggested only a small fraction of crypto tokens should be considered securities, marking a shift in the agency’s approach to digital assets. This change comes amidst evolving regulatory landscapes and ongoing legislative efforts.
Atkins shared these insights during the Wyoming Blockchain Symposium in Jackson Hole on Tuesday. He discussed the SEC’s “Project Crypto” initiative, which aims to create a regulatory framework for digital assets, potentially influencing how the agency will regulate companies in the future. He emphasized the SEC’s independent path as Congress deliberates on new bills to establish market structure.
“We can not go about looking at [tokens] themselves as necessarily being a security,” Atkins stated, adding:
“From the SEC’s perspective, we will plow forward on this idea that just the token itself is not necessarily the security, and probably not. There are very few, in my mind, tokens that are securities, but it depends on what’s the package around it and how that’s being sold.”
SEC Chair Paul Atkins speaking in Jackson Hole on Tuesday. Source: Wyoming Blockchain Symposium
Contrasting Views on Crypto Tokens
Atkins’ remarks represent a notable departure from the stance of former SEC Chair Gary Gensler. Gensler had previously asserted that the “vast majority” of crypto assets were securities based on the SEC’s application of the Howey test, a standard used to determine if an asset qualifies as a security.
Gensler stepped down from the SEC in January, coinciding with US President Donald Trump’s inauguration. His departure led to Commissioner Mark Uyeda serving as acting chair until Atkins’ confirmation.
Awaiting ‘Clear Rules of the Road’ from Congress
While Atkins holds the authority to interpret SEC rules and guidelines, including those related to digital assets, Congress is actively working on legislation to establish a clear crypto market structure. The US House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act in July, and the Senate Banking Committee has expressed plans to expand on this bill to develop their version of market structure legislation.
The Senate is scheduled to reconvene from recess on Sept. 2. During the Wyoming Blockchain Symposium, Senate Banking Committee Chair Tim Scott indicated that up to 18 Democrats might join Republicans in supporting market structure legislation.
For more details on these developments, visit the source at Cointelegraph.
