Thomas Daniels
At the Wyoming Blockchain Symposium in Jackson Hole, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins introduced Project Crypto, a strategic initiative aimed at redefining the regulatory approach to digital assets in the United States.
Atkins signaled a significant departure from previous SEC leadership, emphasizing a shift toward innovation and regulatory clarity. “We cannot go about looking at [tokens] themselves as necessarily being a security,” he said. “Just the token itself is not necessarily the security, and probably not. There are very few, in my mind, tokens that are securities, but it depends on what’s the package around it and how that’s being sold.”
This position sharply contrasts with the approach of former SEC Chair Gary Gensler, who asserted that the “vast majority” of crypto assets should be treated as securities under the Howey Test.
Project Crypto outlines a more permissive framework, introducing tailored disclosures, exemptions, and safe harbor provisions for offerings such as ICOs, airdrops, and network-based rewards. This approach supports Atkins’ belief that most tokens are not inherently securities.
The initiative aligns with broader executive policy. A recent 160-page White House report on crypto regulation recommends categorizing digital assets into securities, commodities, and stablecoins, while proposing a unified trading environment for all token types.
Meanwhile, Congress is pushing forward with legislative action. In July, the House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act, and the Senate Banking Committee, led by Chair Tim Scott, is expected to build upon it when Congress returns from recess on September 2. Scott, who also spoke at the symposium, indicated bipartisan support, noting that up to 18 Democrats may join Republicans in advancing crypto market structure legislation.
