The Chairman of the U.S. Securities and Exchange Commission (SEC) Paul Atkins stated that only a very small percentage of cryptocurrency tokens should be considered securities, marking an important change in the agency's approach to classifying digital assets.
Speaking at the Wyoming Blockchain Symposium in Jackson Hole on Tuesday, Atkins stated that the SEC's “Project Crypto” initiative to build a regulatory framework for digital assets will play a crucial role in shaping how the agency oversees businesses in the future. He emphasized that the SEC will follow its own direction while the U.S. Congress continues to discuss bills to establish a market structure.
At the SEC, we cannot look solely at the token itself and automatically consider it a security,” Atkins said, adding:
“From the SEC's perspective, we will continue with the view that the token itself is not necessarily a security, and perhaps the majority are not. In my view, only a very few tokens are considered securities – this also depends on the surrounding product package and how it is issued and offered.”
Atkins's statements indicate a significant shift from the previous views of former SEC Chairman Gary Gensler, who asserted that “the majority” of tokens are securities under the Howey Test.
Gensler resigned in January, on the very day President Donald Trump took office, and Commissioner Mark Uyeda served as acting Chairman until Atkins was confirmed by the Senate.
Congress prepares a framework law for crypto
Although Atkins currently has the authority to interpret and apply SEC regulations, including in the digital asset space, the U.S. Congress is still pushing for new laws to establish a framework for the cryptocurrency market.
The U.S. House of Representatives passed the Clarifying Lawful Overseas Use of Data (CLOUD Act) in July. Senate Banking Committee leaders also stated they would “build further” from this bill to present a Senate version.
According to the schedule, the Senate will return to work on September 2. Speaking at an event in Wyoming, Senator Tim Scott – Chairman of the Senate Banking Committee – revealed that there could be up to 18 Democratic Senators joining Republicans in supporting a framework law for the crypto market.