TLDR
- SEC Chair Paul Atkins states most crypto tokens are not securities in major policy reversal
- Project Crypto creates unified regulatory framework for digital asset trading, lending and staking
- Super-app platforms will operate multiple crypto services under single license
- SEC moves from enforcement-based policy to clear regulatory guidelines
- European banks must hold 1,250% risk weight against Bitcoin and Ether under new rules
SEC Chair Paul Atkins announced a major shift in cryptocurrency regulation during his keynote speech at the OECD Roundtable in Paris on Wednesday. He declared that “most crypto tokens are not securities,” marking a departure from years of aggressive enforcement.
The announcement comes as part of the SEC’s Project Crypto initiative, which aims to modernize digital asset regulation. Atkins promised clear, predictable rules instead of policy-making through enforcement actions.
“It is a new day at the SEC,” Atkins told attendees. “Policy will no longer be set by ad hoc enforcement actions.”
The statement breaks with SEC practice since the 2017 DAO Report, which applied the Howey test to many token sales. This led to numerous enforcement actions against crypto exchanges and token issuers.
Under Atkins’ leadership, the SEC will distinguish more clearly between securities and non-securities. This gives entrepreneurs firmer ground when structuring tokenized projects and raising capital on-chain.
Super-App Platform Model Gets Green Light
The new regulatory framework introduces a “super-app” platform model for digital assets. These platforms can facilitate trading, lending, and staking services under one regulatory umbrella.
Atkins said platforms should have flexibility to offer multiple custody solutions. He emphasized providing minimum regulation needed to protect investors without burdening entrepreneurs.
“We should not overburden entrepreneurs with duplicative rules that only the largest incumbents can bear,” Atkins stated. The approach aims to support smaller crypto companies competing with established financial institutions.
The SEC chair praised the European Union’s Markets in Crypto-Assets (MiCA) framework. He suggested US policymakers could learn from Europe’s comprehensive digital assets regime.
European Banking Rules Create Regulatory Contrast
While the US moves toward crypto-friendly regulation, European authorities are taking a more conservative approach. The European Banking Authority (EBA) finalized rules requiring EU banks to hold more capital against cryptocurrencies.
Under the new European framework, unbacked digital assets like Bitcoin carry a 1,250% risk weight. Banks must set aside substantial capital buffers when dealing with these assets.
Bitcoin and Ether fall into “Group 2b” under the European classification system. The draft regulatory standards now await review by the European Commission.
This conservative stance contrasts sharply with US developments. The FDIC now allows supervised banks to engage in crypto activities without prior approval.
Switzerland has updated its DLT laws to support crypto custody and stablecoin guarantees. This creates varying regulatory approaches across major financial jurisdictions.
Atkins called for international cooperation to facilitate innovative markets. He emphasized working together to extend freedom and prosperity through coordinated regulation.
The President’s Working Group on Digital Asset Markets provided a blueprint supporting the SEC’s modernization efforts. This group delivered recommendations to accelerate US competitiveness in digital assets.
The Project Crypto initiative represents the SEC’s commitment to keeping innovation in the United States. Previous enforcement-heavy approaches drove many crypto companies to establish operations overseas.
