SEC Chair Paul Atkins said on Tuesday that only a small number of tokens should be treated as securities, marking a shift from the view of the agency under its prior leadership.
Speaking at the Wyoming Blockchain Symposium, Atkins explained that the nature of a token itself is not enough to define it as a security, but rather the context of how it is sold and packaged.
His remarks highlighted a new direction for the US securities regulator as it continues to shape rules around digital assets.
Few tokens are seen as securities
Atkins told the audience that in his opinion, “very few” crypto tokens qualify as securities. He stressed that labelling an asset depends on the circumstances of the sale rather than the token’s design.
The comments contrast with those of former SEC Chair Gary Gensler, who had argued that most tokens in circulation fell under securities laws. Atkins said the regulator is now “ploughing forward” with a different mindset and is determined to reflect the unique qualities of blockchain assets.
Launch of Project Crypto
The remarks came weeks after the SEC unveiled “Project Crypto,” a new initiative aimed at updating securities laws to match digital asset markets. Atkins described the project as a step toward bringing American capital markets on-chain.
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He also presented it as a way to encourage innovation rather than stifle it with outdated rules. The chair has positioned Project Crypto as central to the SEC’s new approach, saying it is designed to both protect investors and create room for technology to grow.
Contrast with previous leadership
Under the prior administration, the SEC took a harder line against crypto firms. Gensler’s view that most tokens should be treated as securities fueled enforcement actions and lawsuits across the industry.
Atkins’ comments, however, suggest a policy turn that could ease pressure on companies working with digital assets. He told the Wyoming audience that “it is a new day” for the industry and that his agency wants to be seen as a partner in innovation.
Market reaction and praise
Some analysts and industry leaders have welcomed the shift. Bernstein analysts recently called Project Crypto the most ambitious plan ever put forward by a sitting SEC chair, suggesting it could reshape Wall Street itself.
They said the framework may provide clarity that has been missing in the market for years. Bitwise CIO Matt Hougan went further, describing the initiative as a roadmap for investors over the next 5 years.
He pointed to Atkins’ idea that eventually all forms of assets, from stocks to government bonds to the US dollar, could exist and trade on blockchain networks.
Building a framework
Atkins said the SEC must create a structure that prevents “regulatory mischief” and ensures that rules will stand the test of time as crypto markets evolve. By stressing collaboration, Atkins tried to signal that his agency wants to balance oversight with innovation.