Only a few cryptocurrencies are considered securities, stated SEC Chairman SEC Paul Atkins at a symposium in Wyoming.
“In my view, there are very few tokens that are securities, but it all depends on the conditions of their offering and sale,” said the head of the regulator.
His remarks contrast with the opinion of former SEC Chairman Gary Gensler, who considered most digital assets as securities under the Howey Test. Only Bitcoin and Ethereum were exceptions, he said.
Atkins’ statement on cryptocurrency classification followed the launch of the Project Crypto initiative. It aims to modernize securities laws and integrate American financial markets into blockchain.
“A new day is dawning, especially for the crypto industry. We are for innovation. Now we want to embrace innovation,” the Commission’s Chairman also noted.
After the symposium, Atkins wrote that the agency “must create a regulatory framework that will protect the crypto market from regulatory arbitrariness in the future.”
“I look forward to working with colleagues in the administration and Congress to accomplish this task,” he added.
Previously, Bernstein analysts described the initiative as “the boldest and most transformative vision for digital assets.”
Bitwise’s Chief Investment Officer Matt Hougan saw it as a roadmap for investors over the next five years.
“The most optimistic document on cryptocurrency I’ve read wasn’t written by some random expert on X. Its author was the SEC Chairman,” he commented on Project Crypto.
In August, following the conclusion of the legal battle between the Commission and Ripple, Atkins promised to focus on developing clear rules for the crypto industry.