Friendlier approach toward cryptocurrency defines new SEC policy under Chair Paul Atkins

Friendlier approach toward cryptocurrency is now the defining theme at the SEC under Chair Paul Atkins.

His stance contrasts sharply with that of the former leadership. While Gary Gensler believed most crypto tokens were securities, Atkins argues the opposite. His message is clear. Regulation should follow innovation, not suppress it.

Atkins recently declared that only a small number of crypto tokens qualify as securities. This means fewer restrictions for developers and projects building in the space. From my perspective, this is long overdue. Crypto has been operating in regulatory fog for years.

Speaking at the Wyoming Blockchain Symposium, Atkins reinforced this shift. “There are very few, in my mind, tokens that are securities,” he said. The real issue, he emphasized, lies in how these tokens are sold and packaged.

This matters because projects need regulatory certainty. Investors do too. When Chair Paul Atkins signals openness, capital follows.

SEC Chair says most crypto tokens are not securities

To support this shift, the SEC recently launched “Project Crypto.” The project is meant to modernize outdated securities laws. It aims to bring American financial systems closer to blockchain infrastructure.

From where I stand, that is a realistic move. Blockchain offers transparency and speed that traditional systems lack. Atkins sees this, and he is moving fast. In his own words, “We are about innovation. Now we want to embrace innovation.”

Critically, this approach reduces regulatory friction. Project Crypto not only redefines token classification. It repositions the SEC as a potential partner, not just an enforcer. For cryptocurrency firms, that is a meaningful change.

Chair Paul Atkins said in a public post that the goal is to “future-proof the crypto markets against regulatory mischief.” That phrase is telling. It suggests a long-term commitment to protecting innovation, not stifling it.

Project Crypto reshapes the SEC’s direction toward cryptocurrencies

Reactions have been positive. Bitwise CIO Matt Hougan sees Project Crypto as a strategic roadmap for the next five years. His analysis suggests that more assets, from stocks to fiat, will eventually move on-chain.

Bernstein analysts called the SEC initiative “the boldest and most transformative crypto vision ever laid out by a sitting SEC chair.” These endorsements matter. They reflect growing confidence in Atkins’ leadership.

Still, not everyone agrees. I would argue that too fast a shift might leave gaps. For example, some scams still exploit regulatory gray zones. Without a clear framework, those bad actors might flourish.

That is why balance is key. A friendlier approach toward cryptocurrency must not equal deregulation. It must mean smart, adaptive rules. That is what investors and developers want, and what Chair Paul Atkins claims to be building.

A friendlier approach toward cryptocurrency brings opportunity and risk

The implications are wide. Fewer tokens being classified as securities changes everything. Projects can operate without fear of lawsuits. Exchanges can list more assets. Investors can explore the space with fewer barriers.

But the SEC must now prove it can execute. Project Crypto is still a plan. Execution will depend on cooperation across Congress, agencies, and industry leaders.

In my view, Atkins understands that crypto is not going away. His friendlier approach toward cryptocurrency does not promise a free ride. It promises clarity, structure, and a path forward.

That could make the U.S. a safer and more attractive hub for crypto development. Time will tell. But this shift, from confrontation to collaboration, is already being felt across the industry.