SEC Chair Paul Atkins Outlines New Approach to Crypto Regulation
On August 19, 2025, SEC Chair Paul Atkins spoke at the University of Wyoming about the regulatory implications of Bitcoin (BTC)...
Quick overview
- SEC Chair Paul Atkins emphasized the need for clear definitions of digital assets under US securities legislation during his speech at the University of Wyoming.
- Atkins proposed that only a small fraction of crypto tokens should be classified as securities, contrasting with the previous stance of his predecessor, Gary Gensler.
- The SEC plans to form a panel to establish crypto rules that balance investor protection with innovation, while Congress is also working on its own market structure legislation.
- Despite these regulatory developments, the cryptocurrency market continues to experience a downturn, with Bitcoin's price dropping significantly.
On August 19, 2025, SEC Chair Paul Atkins spoke at the University of Wyoming about the regulatory implications of Bitcoin (BTC) and other digital assets. He stressed that digital assets must be defined clearly under US securities legislation, since classification directly affects how they are regulated and traded.
Narrower View on Securities
As part of the SEC’s evolving approach, Atkins proposed that only a small fraction of crypto tokens should be treated as securities. He explained that a token itself is not necessarily a security. From the SEC’s standpoint, the view is that the token alone is probably not a security. Instead, it depends on the full package and how it is sold. He added that only relatively few tokens qualify as securities under this standard.
This view is in sharp contrast to that of his predecessor, Gary Gensler, who believed the majority of digital assets were securities. As a result, the new stance signals that the SEC may make it easier for cryptocurrency projects to launch in the United States without being automatically classified as securities.
JUST IN: 🇺🇸 SEC Chair Paul Atkins says they're going to implement the President's Digital Assets Working Group recommendations "as soon as we can." 👀
"We have a president who understands the importance of making America the crypto capital of the world." pic.twitter.com/CY2FDJq2md
— Bitcoin Magazine (@BitcoinMagazine) August 19, 2025
SEC Panel to Shape Crypto Rules
Atkins also announced that the SEC will form a panel to establish crypto rules. The group’s first objective will be to implement the recommendations of the President’s Digital Asset Markets Working Group. He emphasized that this project is a central part of the White House’s broader digital asset strategy, while also thanking President Trump for his support.
He explained that the panel will develop rules that strike the right balance between protecting investors and allowing innovation. Rules, he noted, must be strong enough to deter misuse but also flexible as technology evolves. Meanwhile, the SEC will continue moving forward independently, even as Congress works on broader market structure legislation.
In addition, Atkins praised the recently enacted GENIUS Act on stablecoins, describing it as a “seminal step for the US Congress and government.” However, he also said there was much “spring cleaning to do at the SEC,” after years of regulation and enforcement by the previous administration.
Congress Moves Toward Market Structure Legislation
While Atkins has the authority to interpret SEC rules on digital assets, Congress is also preparing its own market structure framework. In July, the US House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act. Senate Banking Committee leaders later said they will build on the bill to introduce their own proposal.
The Senate is expected to return from recess on September 2. Speaking at the Wyoming Blockchain Symposium, Senate Banking Committee Chair Tim Scott stated that up to 18 Democrats could join Republicans in supporting the legislation. This shows strong bipartisan momentum for comprehensive crypto rules.
Market Reaction
Despite these favorable regulatory steps, the crypto market slump has continued. Bitcoin’s price dropped as investors shifted to a risk-off stance. The BTC/USD pair fell to $113,120, marking its lowest level since August 5. As a result, Bitcoin has now dropped around 10% from its peak this year.
The broader cryptocurrency market also fell by 1.5% to $3.9 trillion. Ethereum, XRP, and Solana were all in the red, adding to the latest downturn.
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