Blab Crypto
SEC Chair Paul Atkins Announces Project Crypto, Clarifies Most Tokens Are Not Securities
At the Economic Club of New York on Tuesday, SEC Chair Paul Atkins stepped onto the stage to unveil Project Crypto, a joint regulatory initiative with the Commodity Futures Trading Commission (CFTC). The announcement was billed as a “historic step” toward modernizing the rules that govern on‑chain markets, signaling a concerted effort to bring clarity to a space that has long been mired in uncertainty.
Atkins explained that the SEC’s approach is “purposefully” aligned with President Donald Trump’s vision of making the United States the “Crypto Capital of the World.” He stressed that the agency’s work is not a hand‑out for industry but a response to a market need for clear, non‑preferential rules. Project Crypto will deliver a token taxonomy grounded in the Howey test, the established framework that determines whether a digital asset constitutes an investment contract and, therefore, a security. In addition, the initiative will explore purpose‑fit disclosures, exemptions, and safe harbors for initial‑coin offerings, airdrops, and network rewards.
In March 2026, the SEC and CFTC released an interpretive guidance that clarified the definition of “security” as it applies to certain crypto assets. Although the guidance is not a new law, it categorizes most tokens—including non‑fungible tokens (NFTs) and dollar‑backed stablecoins—as non‑securities. The release also identified Bitcoin, Ether, Solana, and XRP as non‑security assets. This move follows a broader trend in the SEC’s regulatory stance: earlier in 2025, the agency issued a statement that most cryptocurrency assets are not securities, a position that diverges sharply from former SEC Chair Gary Gensler’s view that all crypto other than Bitcoin is a security.
Trump’s administration has been openly supportive of the crypto industry. In a 2025 financial disclosure, the president reported more than $1 billion in income from family cryptocurrency ventures during his first year in office. He has publicly described the sector as a “big deal” that the United States must lead or risk ceding dominance to China. The SEC’s clarification is expected to reduce uncertainty for issuers and investors alike, with Atkins noting that the agency has delivered “long‑called‑for certainty” by allowing market participants to know in advance whether a digital asset falls under SEC oversight.
Industry observers warn that the guidance and Project Crypto could shape the pace of token launches and the development of tokenized securities. The SEC has hinted at an “innovation exemption” that could enable the trading of tokenized versions of Wall Street‑listed stocks, a move that would bridge traditional finance and the emerging token economy. These regulatory changes arrive at a time when the United States is actively seeking to maintain a competitive edge in global digital finance. The joint SEC‑CFTC effort is part of a broader strategy to clarify the roles of each agency in overseeing different types of digital assets.
At present, the SEC has not issued formal rules that would replace the interpretive guidance. The agency is expected to publish draft rules in the coming months, after which a public comment period will open. The outcome of that process will determine whether the guidance becomes codified. In summary, Paul Atkins’ announcement signals a shift toward clearer, more predictable regulation for crypto assets. The March guidance and Project Crypto are designed to reduce uncertainty for issuers, investors, and other market participants, while the next steps will involve rulemaking and public consultation before the SEC decides whether to formalize the current interpretations.
Atkins explained that the SEC’s approach is “purposefully” aligned with President Donald Trump’s vision of making the United States the “Crypto Capital of the World.” He stressed that the agency’s work is not a hand‑out for industry but a response to a market need for clear, non‑preferential rules. Project Crypto will deliver a token taxonomy grounded in the Howey test, the established framework that determines whether a digital asset constitutes an investment contract and, therefore, a security. In addition, the initiative will explore purpose‑fit disclosures, exemptions, and safe harbors for initial‑coin offerings, airdrops, and network rewards.
In March 2026, the SEC and CFTC released an interpretive guidance that clarified the definition of “security” as it applies to certain crypto assets. Although the guidance is not a new law, it categorizes most tokens—including non‑fungible tokens (NFTs) and dollar‑backed stablecoins—as non‑securities. The release also identified Bitcoin, Ether, Solana, and XRP as non‑security assets. This move follows a broader trend in the SEC’s regulatory stance: earlier in 2025, the agency issued a statement that most cryptocurrency assets are not securities, a position that diverges sharply from former SEC Chair Gary Gensler’s view that all crypto other than Bitcoin is a security.
Trump’s administration has been openly supportive of the crypto industry. In a 2025 financial disclosure, the president reported more than $1 billion in income from family cryptocurrency ventures during his first year in office. He has publicly described the sector as a “big deal” that the United States must lead or risk ceding dominance to China. The SEC’s clarification is expected to reduce uncertainty for issuers and investors alike, with Atkins noting that the agency has delivered “long‑called‑for certainty” by allowing market participants to know in advance whether a digital asset falls under SEC oversight.
Industry observers warn that the guidance and Project Crypto could shape the pace of token launches and the development of tokenized securities. The SEC has hinted at an “innovation exemption” that could enable the trading of tokenized versions of Wall Street‑listed stocks, a move that would bridge traditional finance and the emerging token economy. These regulatory changes arrive at a time when the United States is actively seeking to maintain a competitive edge in global digital finance. The joint SEC‑CFTC effort is part of a broader strategy to clarify the roles of each agency in overseeing different types of digital assets.
At present, the SEC has not issued formal rules that would replace the interpretive guidance. The agency is expected to publish draft rules in the coming months, after which a public comment period will open. The outcome of that process will determine whether the guidance becomes codified. In summary, Paul Atkins’ announcement signals a shift toward clearer, more predictable regulation for crypto assets. The March guidance and Project Crypto are designed to reduce uncertainty for issuers, investors, and other market participants, while the next steps will involve rulemaking and public consultation before the SEC decides whether to formalize the current interpretations.
