SEC Chair Paul Atkins Claims “Very Few” Tokens Qualify as Securities: What Is “Project Crypto”?
The US Securities and Trading platform Commission (SEC) and its Chair Paul Atkins are strongly indicating a significant shift in policy regarding digital assets. On 19 August 2025, at the SALT conference in Wyoming, Atkins mentioned that merely a “very few” crypto tokens should be classified as securities. Additionally, he noted that the tokens in question are “probably not” securities.
Atkins elaborated that the categorization of tokens is determined by their packaging and method of sale, representing a noticeable departure from the SEC’s enforcement-centric approach under the previous Chair Gary Gensler.
“From the SEC’s standpoint, we will advance this notion that the crypto token itself isn’t automatically a safety. I see very few tokens as securities. However, it relies on how it is packaged and sold,” stated Atkins.
“I can purchase an orange and I’m not necessarily obtaining the assurance that someone will harvest it, squeeze it and then market it and pay me a dividend,” he explained. “That’s distinctly different from merely acquiring a token in the marketplace.”
US Securities and Exchange Commission (SEC) Chair Paul Atkins indicated that only a minor percentage of crypto tokens should qualify as securities.
— Jbelfort Cryptogod (@Jbelfortcrypt) August 20, 2025
DISCOVER: Top Meme Token ICOs to Invest in 2025
What is “Project Crypto”?
I had an excellent dialogue with @TeresaGoody at @SALTConference’s Wyoming Distributed ledger Symposium today regarding my objectives as @SECgov chairman, including Project Crypto and revitalizing IPOs. A new era at the SEC is here.
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— Paul Atkins (@SECPaulSAtkins) August 19, 2025
Atkins also introduced “Project Crypto.” What is “Project Crypto”? It is the SEC’s initiative aimed at modernizing oversight of digital assets and promoting greater trading market infrastructure on-chain.
“Project Crypto” is set to be a multifaceted program to revise the SEC’s digital asset rulebook. It aims to facilitate regulation and align crypto law with the realities of tokenized finance and market operations moving on-chain. “We must construct a framework that safeguards the crypto markets against regulatory mischief. I am eager to collaborate with my counterparts across the Administration and Congress to accomplish this,” stated Atkins.
It will also serve as the SEC’s mechanism to adopt recommendations that will enhance regulatory clarity.
The SEC Crypto Task Force will expedite the implementation of “Project Crypto.”
Explore: Up to 18 Democrats Could Endorse Senate Crypto Bill
SEC to Initiate President’s Digital Assets Group
On 20 August 2025, Atkins used X to announce, “The President’s Working Group on Digital Asset Markets has provided clear recommendations for the SEC—and we’re moving to implement them as soon as possible.” He remarked, “We have a president who recognizes the significance of establishing America as the crypto capital of the globe.”
Atkins indicated that the Group’s initial task will be to act on the recommendations from the President’s Digital Asset Markets Working Group. Moreover, Atkins specified that “Project Crypto” is an essential component of the White House’s larger framework for digital assets.
SEC to establish the President’s Digital Assets Group.
Chair Paul Atkins stated the new division will conclude “regulation by enforcement” and align with the White House strategy.
Only a handful of tokens will be classified as securities — protective frameworks & customized rules are forthcoming.
This could be the… pic.twitter.com/tsknfCo9iG
— Jessica Gonzales (@lil_disruptor) August 20, 2025
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Achieve 1000x in 2025
Key Insights
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The SEC, led by Chair Paul Atkins, is steering towards a more crypto-supportive regulatory framework that regards the crypto token as technology—not automatically a security—and emphasizes legal evaluation based on how assets are marketed and distributed.
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Should the SEC adhere to Atkins’ perspective that only a limited number of tokens are securities, two practical outcomes could arise. First, fewer assets would be categorically subjected to registration or exempt offering processes. Second, the Commission’s focus would turn to the mechanisms of distribution, promotion, and rights.
The post SEC Chair Paul Atkins States “Very Few” Tokens Are Securities: What Is “Project Crypto”? first appeared on 99Bitcoins.
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