Is Crypto Finally Getting Breathing Space? SEC Chair Says ‘Very Few’ Tokens Are Securities

Edyme

August 20, 2025

Atkins told attendees that “very few” crypto tokens should be considered securities under U.S. law, emphasizing that classification depends less on the token itself

The debate over how to classify crypto assets took another turn this week, as U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins suggested that only a small fraction of digital tokens actually qualify as securities.

Speaking at the Wyoming Blockchain Symposium on Tuesday, Atkins signaled a more flexible approach to crypto regulation compared to his predecessor.

Atkins outlines a narrower view of securities

Atkins told attendees that “very few” crypto tokens should be considered securities under U.S. law, emphasizing that classification depends less on the token itself and more on the way it’s packaged and sold.

“Just the token itself is not necessarily the security, and probably not,” he said.

His comments contrast with former SEC Chair Gary Gensler, who repeatedly argued that the majority of crypto assets fell under securities rules.

This perspective arrives as the SEC pushes forward with “Project Crypto,” an initiative launched in July aimed at updating securities law frameworks for blockchain-based markets.

According to Atkins, the project’s goal is to modernize regulations so that financial markets can “move onchain” while giving clarity to innovators and investors alike.

Building a framework for the future

Beyond specific token classifications, Atkins stressed the importance of building rules that can stand the test of time.

In a post on X, he wrote that the U.S. must “craft a framework that future proofs the crypto markets against regulatory mischief,” adding that collaboration with Congress and other federal agencies will be central to that mission.

We must craft a framework that future proofs the crypto markets against regulatory mischief. I look forward to working with my counterparts across the Administration and Congress to get the job done.
— Paul Atkins (@SECPaulSAtkins) August 19, 2025

For the crypto industry, Atkins’ comments may provide some breathing room, especially for projects unsure about their regulatory standing.

Still, questions remain. If most tokens are not securities, how should they be regulated? Will Congress step in with new legislation, or will existing agencies adapt their mandates? These are the issues the SEC and lawmakers are expected to wrestle with in the coming months.

For now, Atkins has made clear that the agency is ready to reset the conversation. “It is a new day, especially for this industry,” he told the symposium. “We are about innovation. Now we want to embrace innovation.”