"Very Few Tokens Are Securities" Says Paul Atkins As SEC Moves Away From Blanket Enforcement

SEC Chair Declares Most Crypto Tokens Should Not Be Treated As Securities

Speaking at the Wyoming Blockchain Symposium in Jackson Hole on Tuesday, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins made clear that the regulator is rethinking how digital assets are categorised.

He argued that only a limited number of tokens meet the legal test of a security, shifting the SEC away from years of aggressive oversight.

Atkins told attendees,

“We can not go about looking at tokens themselves as necessarily being a security. From the SEC’s perspective, we will plow forward and 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.”

His remarks introduced “Project Crypto,” a new SEC initiative designed to provide clearer rules for digital assets.

The programme will explore tailored disclosure requirements, exemptions, and safe harbour provisions for token sales, airdrops, and other blockchain-based activities.

Breaking From The Gensler Era

Atkins’ comments are in stark contrast to those of his predecessor Gary Gensler, who repeatedly maintained that the “vast majority” of crypto tokens were securities under the Howey test.

That stance led to a string of enforcement actions against token issuers and decentralised finance projects.

Gensler resigned on 20 January 2025, the same day President Donald Trump was sworn into office.

Commissioner Mark Uyeda briefly served as acting chair until Atkins’ confirmation.

Since then, the SEC has moved toward what many in the industry view as a lighter regulatory touch.

Congress Prepares To Step In With Market Structure Bill

While the SEC recalibrates its role, lawmakers are working in parallel to create a permanent legal framework for digital assets.

In July, the House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act.

Leaders in the Senate Banking Committee have said they intend to expand on the bill when Congress returns from recess on 2 September.

Senate Banking Committee Chair Tim Scott, also addressing the Wyoming event, suggested that bipartisan support was within reach.

He said as many as 18 Democrats could join Republicans in backing a market structure bill later this year.

Industry Looks For Relief From Enforcement-First Approach

The shift in tone at the SEC has already attracted attention from major players in the crypto sector.

Groups including Andreessen Horowitz and the DeFi Education Fund have urged the regulator to extend protection to developers, even in cases where applications are partly centralised.

Their requests reflect broader hopes that regulation will move from enforcement to constructive guidance.

Atkins assured the audience that the agency’s priority is now to support innovation while addressing risks.

“Regulation by enforcement is over.”

He added that the SEC will focus more on context and conduct rather than issuing blanket classifications.

The Real Test For Crypto Regulation Starts Now

Coinlive believes the SEC’s softer stance could spark optimism, but optimism alone is not enough.

The challenge lies in whether “Project Crypto” can balance flexibility with enforcement without sliding back into uncertainty.

If the framework turns vague or too lenient, the industry risks the same instability it has long fought against.

The real survival test for crypto markets is whether regulators can create clarity that both protects investors and allows innovation to thrive, or whether this shift becomes just another chapter of promises without durability.