Paul Atkins Presented His Vision of Digital Asset Regulation within Project Crypto

• The head of the SEC announced a new stage of the Project Crypto initiative.
• Paul Atkins noted that economic reality is more important than labels in crypto regulation.
• He also believes that the formation of a legal framework requires joint action by Congress, the CFTC, and traditional banking institutions.

Paul Atkins, Chairman of the US Securities and Exchange Commission (SEC), presented a new stage of the Project Crypto initiative aimed at creating a clear and fair system of digital asset regulation. According to him, the goal of the project is to “match the energy of American innovators with a regulatory framework worthy of them” and strike a balance between innovation and investor protection.

As a reminder, Project Crypto was launched in August 2025, with one of its main focuses being the development of criteria for token classification.

Atkins stressed that the Commission will consider introducing a token taxonomy based on the principles of the Howey test, which defines what is considered an investment contract.

Atkins highlighted that most of the crypto tokens currently traded on the market “are not securities in and of themselves,” although some could be sold as part of investment contracts.

The SEC chairman also criticized the current practice of treating a token that once fell within the definition of an investment contract as a security in perpetuity.

He noted that such an approach defies common sense and creates the risk of “disruptive innovation flowing abroad”. Instead, the Commission seeks to provide legal certainty for market participants and support the development of financial technologies within the United States.

It should be noted that Atkins has been the head of the Commission since April this year and advocates transparent regulation of the crypto market with specific and clear rules.

Speaking about the principles of Project Crypto, Atkins emphasized that “economic reality prevails over labels”. In his opinion, a token or NFT does not become a security just because it is called one, and vice versa — not all digital assets associated with initial public offerings should remain under SEC regulation forever.

He also presented a vision of categorizing crypto assets: “digital commodities or network tokens,” “digital collectibles,” and “digital tools” are not securities, while “tokenized securities” remain under the SEC’s jurisdiction.

Separately, Atkins noted that the Commission is working to create a “tailored offering regime” for tokens that are part of investment contracts. This, he said, should “facilitate capital formation and accommodate innovation while, at the same time, ensuring investors are protected.”

In addition, the SEC has announced its intention to develop official rules for the crypto market by the end of 2025 or early 2026.

He stressed the importance of working with Congress, the Commodity Futures Trading Commission (CFTC), and banking regulators to create an appropriate legal framework for non-prime crypto assets.

In conclusion, Atkins said that Project Crypto is not a promise of less regulation, but a “commitment to integrity, intelligibility, and the rule of law.”

Earlier, we wrote that the SEC is considering allowing crypto assets to be traded on national stock exchanges.