SEC Chair Paul Atkins Signals Major Shift on Crypto Token Rules

At the SALT conference, SEC Chair Paul Atkins stated that only a fraction of crypto tokens are to be regarded as securities. His remark spells a radical departure towards an aggressive policy of former Chair Gary Gensler who focused extensively on enforcement. By 2023, the SEC brought over 100 lawsuits against crypto companies under Gensler, such as suits against Coinbase, Binance and Ripple. Atkins faulted this by asserting that it violated competition as it not only exported innovation but also discouraged it in the United States. This new role reduces the breadth of the Howey Test and sets the stage to enable higher regulatory clarity.

Project Crypto and New U S Strategy

Atkins linked his comments to his key initiative, Project Crypto announced in July 2025. Project Crypto attempts to draw clear-line definitions of which kinds of tokens are securities, commodities, stablecoins, and utility tokens. It establishes exemptions to innovation, including safe harbors of early-platform projects ICOs and airdrops. A special task force, with the pro-crypto Commissioner Hester Peirce in the lead, hopes to institute the changes swiftly. The U.S. Chamber of Commerce estimates that it has the potential to drive up to $1 trillion and as much as $3 trillion in blockchain investment in the decade ahead.

International Race of Crypto Regulations

This is as there is an increase in competition to be front runners in terms of blockchain in the world. Such a country experienced a 30 percent boost in blockchain investment than in its neighboring jurisdiction that had ambiguous policies. As of example, some countries, such as Switzerland, Singapore, and the UAE, have risen to prominence because they have frameworks and incubators that can provide adjustable regulations and guidelines. On the contrary the U.S. was lagging behind in their previous risk-averse policies. His appointment in the previous year already placed a boost to market confidence that briefly drove Bitcoin above $100,000 near the end of 2024.

Industry and market Response

Industry leaders said that it was a long overdue regulatory reset by Atkins. Crypto enthusiasts on social media portrayed the action as a 180-degree turnaround in the approach by Gensler. The markets displayed some optimistic caution, with Bitcoin trading around $98,000 and Ethereum well into the thousands to reach the value of $3,200 as of August 20, 2025. Opponents, however, have sounded off that weakened policing and monitoring would leave investors vulnerable to investments scandals and market manipulation. Consumer organizations referred to collapses such as FTX in the past as an example of the risks of lack of proper oversight. What is happening right now is the question of whether the SEC can come up with balanced regulations that will benefit innovation as well as serve the interest of investors.