SEC Chairman Paul Atkins stated that only a small portion of cryptocurrency tokens can be considered securities. He made this statement at a blockchain symposium in Jackson Hole, Wyoming, where he presented the 'Project Crypto' initiative (the SEC's program to modernize securities legislation and create rules for the digital asset market).
According to him, the regulator will proceed from the understanding that a token itself is not a security and often does not fall under this definition. Atkins noted that it all depends on how exactly the digital asset is issued and sold.
How the SEC's approach has changed
This position sharply contrasts with that of former SEC chairman Gary Gensler, who argued that the overwhelming majority of crypto assets are securities that fall under the Howey Test standard applied by the Securities and Exchange Commission and therefore should be regulated as securities.
Gensler left the agency in January, after Donald Trump took office as the President of the United States. Prior to Atkins' appointment, Commissioner Mark Uyeda temporarily performed the duties of SEC chairman.
Project Crypto is expected to serve as the foundation for regulating digital assets and the gradual tokenization of traditional financial instruments.
We need to create a system that will protect cryptocurrency markets from regulatory violations in the future. I look forward to working with my colleagues in the administration and Congress to accomplish this task, Atkins wrote on his X account after his speech.
Analysts at Bernstein called the program 'the boldest and most revolutionary vision of cryptocurrencies' among all sitting SEC chairs. Bitwise CIO Matt Hougan added that the project can be viewed as a roadmap for investments over the next five years.
The SEC chairman also stated that he would like to restore the popularity of initial public offerings (IPOs). According to him, this process in the U.S. has become too expensive and burdensome in terms of bureaucracy, and he intends to change this.