SEC Chair Paul Atkins announced at the Wyoming Blockchain Symposium on August 19, 2025, that only a small fraction of crypto tokens qualify as securities, hinting at regulatory changes.
This paradigmatic shift could stimulate institutional investment, redefine token classifications, and significantly impact U.S. crypto markets as they integrate tokenized assets more effectively.
SEC Chair Paul Atkins asserts most crypto tokens arenโt securities, suggesting regulatory shifts in the digital asset sector.
The regulatory landscape for cryptocurrencies in the United States may be shifting, as SEC Chair Paul Atkins challenges the traditional classification of crypto tokens as securities. This could lead to significant changes in how the industry is regulated and signal a move towards fostering growth rather than litigation.
SEC Chair Declares Few Tokens as Securities
SEC Chair Paul Atkins declared that โvery fewโ crypto tokens are classified as securities. This statement indicates a significant policy shift towards regulatory clarity and modernization of digital asset rules. Project Crypto, an initiative focusing on crafting a comprehensive cryptocurrency regulations framework, signifies this shift.
Chair Atkins announced initiatives like Project Crypto, focusing on crafting a framework for crypto markets. His remarks were made at the Wyoming Blockchain Symposium, signaling a move towards clear regulation over deterrence-by-litigation. Paul Atkins emphasized: โDecentralized finance and other forms of on-chain software systems will be part of our securities markets and not drowned out by duplicative or unnecessary regulation.โ
Clarification May Boost U.S. Institutional Crypto Involvement
The regulatory clarification is anticipated to foster new institutional involvement in tokenized assets, with a focus on the SECโs regulatory stance on liquid staking activities. It is seen as a catalyst for increasing U.S.-based funding and encouraging development within the crypto sector.
This policy shift may potentially lower compliance barriers, enhancing Total Value Locked (TVL) across U.S. DeFi protocols. It is likely to promote the domestic launch and growth of tokenized securities, signaling a forward trajectory.
Shift in SEC Strategy to Emphasize Economic Function
Under previous SEC chairs, nearly all tokens were typically labeled as securities, leading to enforcement actions. The current emphasis is on economic function rather than structural assumptions, aiming to reverse trends of project and liquidity migration offshore. The impact of digital finance revolution as discussed by the SEC is tied closely to this strategic shift.
Kanalcoin experts suggest this development might boost U.S. competitiveness in the crypto market. The shift from enforcement to clear regulation is viewed as a strategy to sustain domestic innovation and operational efficacy.
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