Paul Atkins, a member of the U.S. Securities and Exchange Commission (SEC), stated that only a small portion of cryptocurrencies fall under the definition of securities. His statement shed light on the complex process of regulating the crypto market. Atkins emphasized that most tokens, such as $BTC and $ETH , do not meet the criteria set forth in the Howey Test and are therefore not subject to strict SEC oversight. However, some projects, particularly those related to centralized financial instruments, may be classified as securities.
This position may ease the pressure on the crypto industry, which has recently faced numerous lawsuits from regulators. Experts believe that clearer frameworks will help innovation, but also emphasize the need to protect investors. Against the backdrop of this news, the price of Bitcoin stabilized at $114,000, and the market capitalization of cryptocurrencies increased to $3.9 trillion.
Atkins called for collaboration between regulators and the industry to create a balanced approach. His words may mark a turning point in the relationship between the SEC and the crypto sector.
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