In a move that could ripple through the digital currency landscape, SEC Chair Paul Atkins declared at the Wyoming Blockchain Symposium that only a scant few tokens qualify as securities under current regulations. Speaking on August 20, 2025, in Cheyenne, Atkins revealed insights into the SEC’s evolving stance on digital assets, a topic that has kept the crypto community buzzing for years.
A New Dawn for Digital Assets?
Atkins’ remarks come at a pivotal time, as the SEC’s Project Crypto continues to unfold under the watchful eye of the Biden administration. His assertion—that the majority of tokens don’t meet the criteria to be classified as securities—signals a potential shift in regulatory focus. “The industry is maturing,” Atkins stated. “We’re moving toward a framework that better aligns with the realities of tokenized ecosystems.”
The implications are significant. By narrowing the scope of what constitutes a security, the SEC seems poised to create a more conducive environment for innovation. This could embolden developers and investors who have been navigating the murky waters of regulatory uncertainty for far too long. Yet, the announcement also raises eyebrows. Are we on the brink of a regulatory overhaul, or is this merely a recalibration of existing policies? As explored in a16z’s recent pitch to the SEC for a safe harbor, there is a growing call for clearer guidelines to support DeFi innovations.
Historical Context Meets Future Outlook
It’s worth noting that the SEC’s journey with digital assets has been anything but straightforward. Back in 2018, the commission was embroiled in high-profile cases that saw it taking a hard line against initial coin offerings (ICOs). Fast forward to today, and the focus appears to have shifted—if not softened. “We can’t ignore the past,” Atkins remarked. “But we also can’t let it dictate our future.”
This evolution has not occurred in a vacuum. The SEC’s relationship with the Trump administration set the stage for these developments. During that era, the emphasis was on clarity and enforcement, often leading to contentious debates about the very nature of cryptocurrencies. Under Biden, however, the tone seems to have softened, albeit without sacrificing the core principles of investor protection.
For market players, this could mean a more predictable regulatory environment—one where compliance doesn’t come at the cost of creativity. But not everyone is convinced. According to digital asset analyst Sarah Chang, “While Atkins’ comments are encouraging, the lack of specific guidelines leaves room for interpretation, which could be a double-edged sword.”
Industry Implications and Next Steps
As the crypto landscape continues to evolve, the SEC’s approach could set the tone for other regulators worldwide. Platforms like Lido and EigenLayer, which have capitalized on decentralized finance (DeFi) innovations, could stand to benefit from a clearer regulatory environment. With the rise of staking and yield-generating protocols, the distinction between traditional securities and digital tokens becomes even more critical. This aligns with efforts by groups like DeFi Education Fund advocating for SEC safe harbor, highlighting the need for a supportive regulatory framework.
But here’s the catch: while Atkins’ comments might signal a regulatory thaw, the broader market is still fraught with challenges. Issues like hacks, slashing, and the complex dynamics of APY (annual percentage yields) remain pressing concerns. The SEC’s evolving stance could provide a framework for addressing these issues, but it won’t solve them overnight.
Looking ahead, the crypto community is likely to advocate for more detailed guidance. Will the SEC follow through with concrete policy changes, or are we witnessing a mere rhetorical shift? Only time will tell. One thing is certain: the debate over what constitutes a security in the digital realm is far from settled.
As the symposium wrapped up, attendees left with a mix of optimism and lingering questions. Can the SEC maintain its balance between innovation and regulation? What will the next chapter of Project Crypto bring? These are questions for another day—but ones that will undoubtedly shape the future of digital assets.
Source
This article is based on: SEC Chair Atkins: There are very few tokens that are securities
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
