In a significant regulatory shift, SEC Chair Paul Atkins has outlined a new stance that could reshape the landscape of digital assets in the United States. This change diverges sharply from the broad enforcement strategies of previous years, with Atkins asserting that numerous types of crypto tokens—including network tokens, digital collectibles, and various digital tools—should not be categorized as securities.
This declaration potentially allows the Commodity Futures Trading Commission (CFTC) to expand its oversight of the cryptocurrency market, paving the way for the resurgence of initial coin offerings (ICOs) without the immediate need for new congressional legislation.
Atkins emphasized that many ICOs linked to these categories of tokens would fall outside the SEC”s regulatory purview. His statements suggest a significant reallocation of authority, as he pointed out that assets such as network tokens, which derive their value from the utility of decentralized systems rather than managerial efforts, and digital collectibles like NFTs, which do not guarantee profit expectations, should be under CFTC regulation.
Following his appointment in April 2025, Atkins initiated a token taxonomy through the SEC”s Project Crypto to clarify which digital assets are considered securities. This framework aims to refine the application of the Howey Test, suggesting that an asset should only be deemed a security when its value relies explicitly on the management efforts of others.
In this new model, only tokenized securities offerings—essentially digital representations of conventional financial instruments—would remain under the SEC”s strict jurisdiction. This marks a departure from the previous administration”s approach, which often broadly classified most tokens as securities through aggressive enforcement, leading to a chilling effect on innovation and prompting many companies to relocate outside the U.S.
Atkins” refined definition seeks to invite companies back into the U.S. market while mitigating the risk of expansive regulatory actions. Observers are already speculating about a potential revival of ICO fundraising, which has been largely inactive in the U.S. since 2018. Should this new regulatory landscape take shape, issuers might more easily conduct token sales under CFTC oversight, avoiding the extensive registration burdens imposed by the SEC.
Major industry players are aligning with this emerging regulatory framework. For instance, Coinbase has launched new platforms that resonate with Atkins” vision, indicating a growing confidence that the ICO market may soon reopen within a clearer and more predictable regulatory environment.
If fully realized, this taxonomy could fundamentally change how digital assets are governed in the U.S., reassigning the majority of tokens to the CFTC”s jurisdiction while reserving only true securities for the SEC. This potential shift could rejuvenate domestic innovation and offer much-needed clarity to crypto developers, exchanges, and investors.
