SEC Chair Says Only a Few Tokens Are Securities as ‘Project Crypto’ Advances
SEC Chairman Paul Atkins says only a small number of cryptocurrencies are securities. Speaking at the Wyoming...
Quick overview
- SEC Chairman Paul Atkins asserts that only a few cryptocurrencies qualify as securities, emphasizing the importance of marketing and sales methods.
- Atkins' new initiative, Project Crypto, aims to provide clear guidance on token issuance and modernize custody and trading rules for digital assets.
- The SEC is focusing on flexibility in regulations to foster innovation while ensuring investor protection.
- The U.S. government is actively working to establish a leadership role in the global digital asset landscape through regulatory reforms and legislative efforts.
SEC Chairman Paul Atkins says only a small number of cryptocurrencies are securities. Speaking at the Wyoming Blockchain Symposium 2025, Atkins said it’s not the token itself that matters but how it’s marketed and sold.
“Just the token itself is not a security,” Atkins said. “There are very few, in my view, tokens that are securities but it depends on the package and how it’s being sold.”
That’s a big change from former SEC Chair Gary Gensler who said most tokens were securities. That approach led to aggressive enforcement and left many companies unsure of how to comply.
‘Project Crypto’ Aims to Clear the Air
Since taking office in April, Atkins has been pushing for regulatory clarity and a more collaborative relationship with the crypto space. His latest initiative, Project Crypto, is designed to provide practical guidance on token issuance, custody and trading while avoiding outdated rules that could stifle growth.
Key elements of Project Crypto include:
- Clear compliance pathways for token offerings.
- Update custody and trading rules to fit digital assets.
- Exemptions and interpretative authority to modernize oversight.
SEC Chair Atkins reaffirms commitment to Project Crypto, aiming to embrace innovation by potentially excluding most crypto offerings from strict regulatory oversight. This could foster a more dynamic and innovative crypto market environment.
— CryptoAlerts (@RetailAlerts_Z) August 20, 2025
Atkins said while formal rules are still being written, the SEC will prioritize flexibility to allow innovation to thrive.
U.S. Crypto Leadership Push
The SEC’s new stance comes as the government is making a broader push to keep America in the global digital asset game. The Trump administration has formed a Working Group on Digital Assets and Congress has passed three bills including the GENIUS Act which is the first federal framework for stablecoins.
Atkins said regulation must protect investors without killing innovation. “We must future proof the crypto markets against regulatory mischief,” he said, signaling a long term vision for market stability.
With SEC reform, congressional action and White House backing, the U.S. is positioning itself to be a leader in setting the rules of the next financial frontier.
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