SEC’s Atkins: 'Most Crypto Assets Are Not Securities' Under Bold New Vision

The Securities and Exchange Commission (SEC) is embarking on a new initiative called “Project Crypto” to kickstart the implementation of President Donald Trump’s proposed crypto policies. SEC Chairman Paul Atkins made the announcement during a speech at the America First Policy Institute, stating that the project aims to modernize securities rules and regulations to facilitate the movement of America’s financial markets onto blockchain technology.

Atkins emphasized the need for clear and simple rules regarding crypto asset distributions, custody, and trading. He acknowledged the confusion surrounding the classification of crypto assets as securities and pledged to provide guidelines for market participants to determine whether a crypto asset falls under this category. Additionally, he proposed purpose-fit disclosures, exemptions, and safe harbors for crypto securities, including initial coin offerings, airdrops, and network rewards.

Contrary to previous statements by former SEC Chairman Gary Gensler, Atkins asserted that most crypto assets are not securities and should not be treated as such. He stressed that even if a project is classified as a security, it should not be a deterrent, and efforts should be made to support innovation in the crypto space.

Atkins also advocated for individuals’ right to self-custody their crypto assets and participate in on-chain activities like staking. He expressed support for the development of “super-apps” that offer a variety of services under a single license, including trading of non-security crypto assets alongside traditional securities.

While the SEC has historically been a dominant regulator in the crypto space, Atkins acknowledged the potential role of the Commodity Futures Trading Commission in future oversight. He defended software developers and emphasized the importance of protecting their rights, particularly in light of recent legal proceedings involving developers like Roman Storm of Tornado Cash.

Overall, Project Crypto signals a proactive approach by the SEC to adapt to the evolving landscape of digital assets and blockchain technology. By streamlining regulations and providing clarity for market participants, the initiative aims to foster innovation and entrepreneurship in the crypto industry.