SEC Chair Paul Atkins Declares ’Very Few’ Tokens Are Securities - What’s Really in ’Project Crypto’?

Regulatory clarity hits crypto as SEC Chair drops bombshell classification stance.

Breaking Down the Boundaries

Paul Atkins just drew new lines in the regulatory sand—claiming only a handful of tokens actually qualify as securities. That's not just talk; it's a potential game-changer for how projects operate without drowning in compliance red tape.

Inside 'Project Crypto'

While specifics remain under wraps, whispers suggest this initiative could redefine token frameworks entirely. Think less legal limbo, more innovation—finally cutting through the bureaucratic noise that's been holding back real development.

Market Impact Unleashed

Expect altcoins to rally as uncertainty lifts. Yet another reminder that traditional finance moves at a snail's pace while crypto outpaces it—typical Wall Street, always playing catch-up with the future it claims to understand.

SEC Commissioner Hester Peirce says "we welcome small, early-stage crypto projects to meet with us in Chicago on September 15." pic.twitter.com/8GuHQbkicU

— Jbelfort Cryptogod (@Jbelfortcrypt) August 20, 2025

What is “Project Crypto”?

I had a great conversation with @TeresaGoody at @SALTConference’s Wyoming Blockchain Symposium today about my priorities as @SECgov chairman, including Project Crypto and making IPOs great again. It’s a new day at the SEC.

Thread pic.twitter.com/I7UIrjQFpT

— Paul Atkins (@SECPaulSAtkins) August 19, 2025

Atkins also unveiled “Project Crypto. “What is “Project Crypto”? It is SEC’s initiative to modernize digital asset oversight and bring more market infrastructure on-chain. 

“Project Crypto” has been introduced as a multi-pronged program to update the SEC’s digital asset rulebook. It is expected to simplify compliance and align oversight with the realities of tokenized finance and market plumbing moving on-chain. “We must craft a framework that future proofs the crypto markets against regulatory mischief. I look forward to working with my counterparts across the Administration and Congress to get the job done,” said Atkins.

It will also be SEC’s vehicle to implement recommendations that wil enhance regulatory clarity. 

The SEC Crypto Task Force will accelerate the execution of “Project Crypto.”

SEC Will Launch President’s Digital Assets Group

On 20 August 2025, Atkins took to X to post, “The President’s Working Group on Digital Asset Markets released clear recommendations for the SEC—and we’re setting out to implement them as soon as we can.” He added, “We have a president who understands the importance of making America the crypto capital of the world.”

Atkins noted that the Group’s first task will be to implement the recommendations from the President’s Digital Asset Markets Working Group. Furthermore, Atkins clarified that “Project Crypto” was a major part of the WHITE House’s bigger plan for digital assets.

SEC to launch the President’s Digital Assets Group.

Chair Paul Atkins says the new unit will end “regulation by enforcement” and align with the White House roadmap.

Few tokens will be treated as securities — SAFE harbors & tailored rules are coming.

This could be the… pic.twitter.com/tsknfCo9iG

— Jessica Gonzales (@lil_disruptor) August 20, 2025

Key Takeaways

• The SEC, under Chair Paul Atkins, is charting a more crypto-friendly regulatory course that treats the token as technology—not inherently a security—and concentrates legal analysis on how assets are offered and sold.

• If the SEC follows through on Atkins’ view that only a narrow slice of tokens are securities, two practical effects could emerge. First, fewer assets would be presumptively subject to registration or exempt offering requirements. Second, the Commission’s focus would shift to the mechanics of distribution, marketing, and rights.