A New Regulatory Vision Emerges
The U.S. Securities and Exchange Commission is preparing for one of its most significant shifts in digital-asset policy, as Chair Paul Atkins unveiled plans for a comprehensive “token taxonomy” that would finally clarify which cryptocurrencies fall under U.S. securities law. Speaking at the Federal Reserve Bank of Philadelphia's Fintech Conference, Atkins said the framework will be anchored in the historic Howey Test, marking a return to foundational legal principles in an industry long plagued by regulatory ambiguity
When Tokens Migrate Beyond Securities Laws
Atkins pushed back on the idea that every crypto asset remains a security indefinitely. He argued that crypto networks evolve, and that a token’s classification may change as the ecosystem decentralizes.
Atkins explained that at a certain point, purchasers stop relying on a core team’s managerial efforts, meaning many tokens trading today no longer meet the Howey standard. This perspective marks a major departure from the stricter interpretations held under former Chair Gary Gensler, who insisted most crypto assets were securities.
A Different SEC Under Trump’s Administration
The agency’s posture has shifted dramatically over the past year under the Trump administration. Gensler’s era was characterized by regulation-by-enforcement, with aggressive lawsuits against several major crypto firms. Under Atkins, the SEC has dropped a number of investigations, opened the door to dialogue with industry leaders, and launched “Project Crypto” a multi-year modernization initiative to revise the SEC’s rulebook for digital assets. Despite the friendlier tone, Atkins made it clear that enforcement remains active.
New Ideas: Super-Apps, CFTC Platforms & Tailored Exemptions
Atkins also reiterated that tokenized securities will continue to fall under SEC jurisdiction, even if the underlying technology evolves. He revealed that he has instructed staff to explore whether tokens tied to investment contracts could legally trade on non-SEC-regulated platforms, including those overseen by the CFTC or under state regulatory regimes. He added that the Commission will consider a “package of exemptions” to create a tailored offering regime for crypto assets linked to investment contracts. Atkins’ earlier comments about “super-apps” - unified platforms where users could trade and custody multiple asset types - resurfaced as he confirmed he has formally directed staff to work on such proposals.
Working in Parallel With Congress
While Congress continues to negotiate its own crypto market structure bills - including versions passing through both the House and Senate - Atkins said the SEC is not acting in isolation. He insisted that the coming taxonomy is meant to reinforce, not override, legislative progress.
The SEC, he said, will maintain close coordination with lawmakers as regulatory frameworks evolve.
