In a bold departure from the Securities and Exchange Commission’s past stance, SEC Chairman Paul Atkins has declared that “most crypto assets are not securities,” marking a significant shift in regulatory approach. Speaking at the America First Policy Institute in Washington, D.C., on Thursday, Atkins unveiled “Project Crypto,” an initiative driven by President Donald Trump’s vision to modernize financial rules, facilitating the transition to on-chain markets.
A New Dawn for Crypto Regulation
Atkins’ announcement signals a seismic shift from the rigorous oversight favored by his predecessors. “While the SEC has historically viewed most cryptocurrencies as securities, we are pivoting,” Atkins asserted, pointing to the confusion wrought by the traditional application of the ‘Howey test.’ His aim is to provide “clear guidelines” to help market participants navigate the murky waters of crypto asset classification. This aligns with recent discussions on how Trump’s Top Crypto Guys: U.S. DeFi Will Thrive, Assures Bitcoin Reserve Is Coming, emphasizing a broader strategic vision for digital assets.
The SEC’s new direction is rooted in a White House report issued by the President’s Working Group, aiming to reshore crypto businesses that fled due to stringent regulations. Atkins emphasized the need for “simple rules” for crypto asset distribution, custody, and trading, while simultaneously advocating for interpretative and exemptive measures to foster innovation.
Embracing Innovation: Self-Custody and Super-Apps
Atkins’ vision doesn’t stop at reclassification. He is championing the right to self-custody digital assets, a nod to the growing trend among crypto enthusiasts to maintain personal control over their holdings. “I believe deeply in the right to use a self-custodial digital wallet,” Atkins stated, acknowledging the choice some investors make to rely on SEC-registered entities for asset management.
In a departure from previous criticism of crypto firms’ multifaceted offerings, Atkins is also promoting the development of ‘super-apps.’ These platforms would allow seamless trading of various asset types, including non-security crypto assets, under a single license. “A broker-dealer should offer trading in both securities and non-securities without needing multiple licenses,” he argued, a move that could radically simplify the operational landscape for crypto businesses.
The Road Ahead: Regulatory Challenges and Opportunities
The introduction of Project Crypto comes at a crucial juncture, with Congress considering legislation that could redefine the landscape of crypto regulation in the U.S. This evolving framework might elevate the Commodity Futures Trading Commission’s role, potentially diminishing the SEC’s urgency in spearheading crypto oversight. Nonetheless, Atkins’ initiative underscores a commitment to protecting software developers—particularly relevant given the recent defense of Tornado Cash developer Roman Storm. For more on the regulatory delays affecting the crypto sector, see Trump’s Truth Social Bitcoin ETF among multiple crypto funds delayed by SEC.
Atkins’ defense of “pure publishers of software code” highlights the nuanced approach he favors, distinguishing between intermediated and disintermediated activities. By crafting pragmatic rules for on-chain operations, the SEC aims to nurture a fertile ground for crypto innovation.
As the dust settles on this announcement, questions linger about how the SEC’s evolving stance will intersect with broader legislative developments. With the crypto landscape in constant flux, Atkins’ vision could catalyze a new era for digital assets in the U.S. But, as always, the devil will be in the details—how these policies unfold will be closely watched by industry insiders and participants alike.
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This article is based on: SEC’s Atkins: ‘Most Crypto Assets Are Not Securities’ Under Bold New Vision
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.
