Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Paul Atkins, formerly the Chair of the US Securities and Exchange Commission (SEC), offered insights into the agency’s future strategy regarding digital assets.
He detailed how the SEC plans to move away from primarily using enforcement actions. Instead, the focus will be on establishing clearer guidelines, providing businesses with upfront certainty about regulatory expectations.
Atkins emphasized that the inherent nature of most tokens doesn’t classify them as securities. He clarified that the determining factor lies in the specific way each token is structured, promoted, and offered to investors.
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Addressing the attendees, he stated:
From the SEC’s viewpoint, we are moving forward with the principle that a token in and of itself does not necessarily constitute a security, and in most cases, it probably isn’t.
He further clarified, “In my opinion, very few tokens qualify as securities. The classification depends significantly on how the token is packaged and the methods used to market and sell it.”
Atkins characterized this policy adjustment as “a new era” for the SEC. He assured the audience that the Commission will not revert to “regulation through enforcement,” a strategy that previously left cryptocurrency ventures in a state of uncertainty regarding compliance until after potential violations occurred.
He articulated, “The approach has evolved. We now aim to promote innovation.”
Atkins’ comments align with the SEC’s “Project Crypto” initiative, a program focused on establishing a clear regulatory structure for digital assets. He confirmed that the agency will pursue this independently from congressional action, as Congress continues to debate relevant market-structure legislation.
The SEC recently provided updated guidance on their perspective regarding particular liquid staking practices. Interested in learning more? Find the complete details here.