The SEC Tightens Its Tone on Cryptos While Congress Remains Divided
The crypto industry anticipated regulatory relief under new SEC leadership, but Paul S. Atkins' recent speech dashed those hopes. Instead of leniency, the SEC is doubling down on clarity, introducing a 'token taxonomy' to classify digital assets into four distinct categories: tools, collectibles, utilities, and regulated securities.
Market Optimism following ETF approvals has waned as the SEC signals unwavering enforcement. Notably, the regulator now acknowledges that some tokens may shed their security status once associated promises expire—a nuanced shift that fails to offset broader uncertainty.
On Capitol Hill, legislative progress stalls. Congressional discussions yield only vague proposals, leaving crypto projects contemplating offshore havens. This regulatory purgatory threatens to stifle innovation while failing to provide clear guardrails for market participants.
