US Securities and Exchange Commission (SEC) Chair Paul Atkins said that the commission is moving away from a purely enforcement-driven response to digital assets and toward clearer, more constructive rules — a shift he framed as necessary to keep crypto activity onshore.
Clearer Path For Crypto Classification
In a CNBC interview, Atkins criticized the SEC’s prior approach, which relied heavily on enforcement actions rather than publishing concrete rules. He argued that this posture created uncertainty for businesses and pushed innovation and activity to other jurisdictions.
“Perhaps nowhere has the cost of failing to do so been more apparent than in our treatment of crypto assets,” he said, noting that past messaging often amounted to “adapt to us—or else.”
Atkins described the agency’s newly issued interpretive guidance, jointly prepared with the Commodity Futures Trading Commission (CFTC), as the start of a more transparent and pragmatic regulatory path.
The joint guidance, released earlier this week, aims to clarify how federal securities laws apply to a broad range of digital tokens. According to Atkins and the agencies’ interpretation, crypto assets should not be treated as securities.
The guidance further outlines how certain token transactions or structural changes can move a token into — or out of — securities regulation, providing a framework for markets to better assess compliance needs.
As part of the new stance, the SEC has identified four categories of crypto assets that it no longer views as securities: digital commodities, digital tools, digital collectibles such as non-fungible tokens (NFTs), and stablecoins.
The agencies said this position reflects collaboration between the SEC and CFTC and aligns with recent legislative proposals, such as the GENIUS Act, with respect to stablecoins. At the same time, tokenized securities remain deemed as securities.
Upcoming Plans Disclosed By Atkins
Atkins further discussed a “fit‑for‑purpose startup exemption” for crypto assets. He suggested the agency consider allowing early-stage crypto entrepreneurs to raise limited capital or operate for a defined period without being fully subject to the agency’s rules.
The Commissioner also expects the SEC to publish a proposal on crypto safe harbors for public comment in the coming weeks. He indicated that the proposal will incorporate the innovation exemption, which would carve out temporary relief from securities laws to enable companies to experiment with new business models.
Atkins stressed that the prior ambiguity had real consequences. By leaving rules implicit and relying on enforcement, the agency invited uncertainty that discouraged some firms from operating in the US and complicated compliance for those that did.
The fresh guidance, he suggested, is a corrective measure meant to bring clarity and to keep digital asset innovation within the US regulatory environment.
Featured image from OpenArt, chart from TradingView.com
