SEC Chairman Paul Atkins said the commission is moving away from a purely enforcement-driven response to digital assets and toward clearer and more constructive rules — a shift he positioned as necessary to keep crypto activity at bay.
A clearer path to classifying cryptocurrencies
On CNBC interviewAtkins criticized the SEC’s previous approach, which relied too heavily on enforcement actions rather than publishing specific rules. This situation has created uncertainty for businesses and pushed innovation and activity to other jurisdictions, he said.
“The cost of failing to do so has perhaps never been more evident in our dealings with crypto assets,” he said, noting that previous messaging has often been a case of “adapt to us — or else.”
Atkins described the agency’s newly issued interpretive guidance, prepared jointly with the Commodity Futures Trading Commission (CFTC), as the beginning of a more transparent and realistic regulatory path.
Joint guidance Released earlier this week aimed to clarify how federal securities laws apply to a wide range of digital currencies. As interpreted by Atkins and the agencies, crypto assets should not be treated as securities.
The guidance also explains how certain token transactions or structural changes could move a token into – or out of – securities regulation, providing a framework for markets to better assess compliance needs.
As part of the new position, the Securities and Exchange Commission Four categories Cryptoassets that are no longer considered securities: digital goods, digital gadgets, digital collectibles such as non-fungible tokens (NFTs), and stablecoins.
The agencies said this position reflects cooperation between the SEC and the CFTC and is consistent with recent legislative proposals, such as the GENIUS Act, regarding stablecoins. At the same time, tokenized securities remain securities.
Upcoming plans revealed by Atkins
Atkins also discussed a “fit-for-purpose startup exemption” for crypto assets. He suggested that the agency consider allowing early-stage cryptocurrency entrepreneurs to raise limited capital or operate for a specified period without fully submitting to the agency’s rules.
The commissioner also expects the SEC to publish a proposal on cryptocurrencies Safe ports For public comment in the coming weeks. He noted that the proposal would include an innovation exemption, which would provide temporary relief from securities laws to enable companies to experiment with new business models.
Atkins stressed that the previous ambiguity had real consequences. By leaving the rules implicit and relying on enforcement, the agency created uncertainty that discouraged some companies from operating in the United States and complicated the compliance process for companies that did.
He suggested that the new guidance is a corrective measure aimed at bringing clarity and preserving digital asset innovation within the US regulatory environment.
Featured image from OpenArt, chart from TradingView.com
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