In what may be remembered as a defining moment for cryptocurrency regulation in the United States, Securities and Exchange Commission Chair Paul Atkins told attendees at the Wyoming Blockchain Symposium that “very few” crypto tokens should be considered securities. The statement, delivered on August 19 and reverberating through markets on August 20, 2025, marks a dramatic departure from the enforcement-heavy approach of his predecessor, Gary Gensler, and signals a new era of regulatory clarity for the digital asset industry.
TL;DR
- SEC Chair Paul Atkins states “very few” crypto tokens qualify as securities
- Remarks delivered at the Wyoming Blockchain Symposium signal a fundamental regulatory pivot
- The shift marks a stark reversal from former Chair Gary Gensler’s position that “vast majority” of crypto were securities
- Congress advances the CLARITY Act, with Senate action expected after September recess
- Atkins introduces “Project Crypto” initiative to modernize SEC’s digital asset framework
From the SEC’s Perspective, a Token Is Not a Security
Speaking at the SALT Blockchain Symposium in Wyoming, Atkins laid out a framework that fundamentally reinterprets how the SEC views digital assets. “From the SEC’s perspective, we will plow forward on this idea that just the token itself is not necessarily a security,” Atkins said. “Very few, in my mind, tokens that are securities, but it depends on the package around it and how it’s being sold.”
This articulation represents a critical evolution in regulatory thinking. Rather than treating the token itself as the security — as the SEC had done under Gensler using the Howey test framework — Atkins draws a clear distinction between the digital asset and the investment vehicle that may surround it. Under this reading, a token becomes a security only when it is packaged and sold in a way that meets the criteria of an investment contract, not by virtue of its existence as a digital token.
The End of the Gensler Era’s Approach
The contrast with the previous administration could not be starker. Former SEC Chair Gary Gensler, who resigned on January 20, 2025, had maintained that the “vast majority” of crypto assets were securities under the Howey test, the legal standard established in 1946 to determine whether an investment qualifies as a security. Under Gensler’s leadership, the SEC brought enforcement actions against dozens of crypto companies, arguing that most tokens on the market met the definition of investment contracts.
Atkins’ appointment, following Commissioner Mark Uyeda’s stint as Acting Chair, has brought a fundamentally different philosophy to the agency. Rather than regulation through enforcement, the new leadership is pursuing what it describes as a more nuanced, case-by-case approach that considers the specific circumstances of each token’s distribution and use.
Congress Moves in Tandem
Atkins’ remarks do not exist in a vacuum. The House of Representatives passed the Digital Asset Market Clarity Act, known as the CLARITY Act, in July 2025, legislation designed to establish clear definitions and regulatory boundaries for the U.S. cryptocurrency market. The bill represents Congress’s most significant attempt to create a comprehensive regulatory framework for digital assets.
Senate action is expected when lawmakers return from their summer recess on September 2, 2025. Senate Banking Committee Chair Tim Scott has indicated strong bipartisan support for market structure legislation, suggesting that as many as 18 Democrats could join Republicans in backing the bill. This level of cross-party cooperation on crypto regulation would have been unthinkable just two years ago.
Project Crypto: Building the Framework
Beyond his public statements, Atkins has also been advancing what the SEC calls “Project Crypto,” an internal initiative to create regulatory frameworks specifically designed for companies that trade in blockchain-based tokens. The stated goal is to protect investors without stifling innovation — a balance that has eluded regulators worldwide since Bitcoin’s inception.
The initiative addresses one of the crypto industry’s longest-standing complaints: that applying traditional securities frameworks to digital assets creates impossible compliance burdens that drive innovation overseas. By building a bespoke framework, the SEC under Atkins is attempting to give businesses and investors the clarity they need to operate within U.S. borders.
Market Reaction and Broader Context
The regulatory optimism comes during a period of market turbulence. On August 20, 2025, the broader crypto market is showing bearish signals, with Bitcoin trading around $113,000 (down 2.7% in 24 hours) and Ethereum slipping below $4,100 (down nearly 5%). The global crypto market capitalization stands at approximately $3.92 trillion, with nearly all major sectors posting losses between 2% and 6%. The disconnect between positive regulatory developments and market performance underscores that macroeconomic factors and profit-taking continue to drive short-term price action.
The SEC’s Crypto ETF Review Continues
In a related development, the SEC has extended its review period for nine crypto ETF filings into October 2025. The extension does not indicate rejection — it reflects the complexity of evaluating these products under the new regulatory framework Atkins is building. The delay suggests the commission is taking a methodical approach rather than rushing decisions, consistent with Atkins’ emphasis on getting the framework right.
Why This Matters
Atkins’ declaration that “very few” crypto tokens are securities represents the most significant regulatory pivot in the history of the U.S. cryptocurrency market. It effectively ends years of legal uncertainty that has hung over the industry, where companies operated under the threat of enforcement actions for activities that may not have constituted securities violations. Combined with congressional progress on the CLARITY Act and the SEC’s own Project Crypto initiative, the United States is building what could become the world’s most comprehensive and innovation-friendly crypto regulatory framework. For an industry that has spent years fighting for recognition and fair treatment, this is the breakthrough moment many have been waiting for. The real test now is execution — turning these statements and legislative proposals into enforceable rules that provide lasting clarity.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Cryptocurrency investments carry significant risk due to market volatility. Always conduct your own research and consult with qualified financial and legal advisors before making investment decisions.
from ‘every token is a security’ to ‘very few tokens are securities’ in one chairmanship. the whiplash is real
CLARITY Act advancing in Congress while Atkins does this at the SEC. they’re finally coordinating instead of fighting each other. thats the real news here
Gensler must be having a rough week watching his entire framework get dismantled this fast
Atkins drawing the line between the token and ‘the package around it’ is actually a smart legal distinction. Howey was never about the orange, it was about the contracts surrounding the orange
Project Crypto sounds like a working title they forgot to change lol. but seriously, modernizing the SEC’s digital asset framework is overdue by about 6 years