SEC Chair Paul Atkins Rejects Securities Label for Most Crypto Tokens

The U.S. SEC has been increasingly softening its stance on digital assets under the Trump administration. 

In a recent appearance, SEC Chair Paul Atkins hinted at a change in how crypto tokens are viewed, as the agency explores ways to modernize rules for the evolving digital asset market.

Most Tokens Aren’t Securities, Says Atkins

SEC Chair Paul Atkins, speaking in a recent fireside chat at the Wyoming Blockchain Symposium in Jackson Hole, said that only a small portion of crypto tokens should be classified as securities. His remarks highlight a potential shift in how the agency approaches digital assets and regulation.

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

SEC Wants Clear and Adaptable Rules

Atkins stressed that the SEC’s responsibility is to provide transparent guidelines that can evolve with the industry.

In a recent post on X, he wrote: 

“We must craft a framework that future proofs the crypto markets against regulatory mischief. I look forward to working with my counterparts across the Administration and Congress to get the job done.”

Congress Moves to Shape Crypto Rules

While Atkins works on shaping SEC policy, Congress is also pushing forward. 

The House passed the CLARITY Act in July, and the Senate plans to follow with its own market-structure bill in September.

To align with these efforts, Atkins recently announced “Project Crypto,” a wide-ranging set of pro-crypto initiatives that will modernize securities laws. The plan includes:

• Clear standards for when tokens qualify as securities
• Safe harbors for token launches
• Updated custody requirements for institutions
• Approval for “super-apps” that combine trading, lending, and other services under a single license.

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Trump’s Push for a Crypto-Friendly U.S.

In another interview with Fox Business, Atkins shared that the agency is bringing together all divisions of the agency to carry out President Trump’s push to make the U.S. more crypto-friendly.

The SEC is also taking a fresh look at crypto custody rules, specifically how broker-dealers, asset managers, and advisers handle digital assets. 

“The main reason for doing all this and addressing these various regulations is to provide some certainty for people,” he said.

The SEC’s evolving stance, combined with action from Congress, signals a potential reset for crypto regulation in the United States.

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