Paul Atkins Drops Bombshell Crypto Rulebook: A Game-Changer for Token Markets?

Regulatory thunderbolt hits DeFi as former SEC commissioner Paul Atkins unveils a controversial crypto rulebook. Could this be the framework that finally brings clarity—or chaos—to digital asset markets?

The 87-page document proposes sweeping changes to how tokens are classified, traded, and regulated. Spoiler: Wall Street won't like page 42.

Atkins' blueprint arrives as the SEC struggles to contain the crypto genie. His solution? Replace 'regulation by enforcement' with actual rules—what a concept.

Market makers are already gaming the proposals. One anonymous VC quipped: 'Finally, loopholes we can lobby against!'

The real question: Will this stabilize markets or create new arbitrage opportunities for those who can afford the compliance teams? Place your bets—the house always wins.

TLDR

• Paul Atkins announced a new crypto rulebook to clarify how digital assets will be classified under U.S. law.
• The new framework divides tokens into commodities, collectibles, tools, and tokenized securities.
• Only tokenized securities will be regulated as securities under the updated SEC guidelines.
• Paul Atkins said tokens may lose security status as their networks become decentralized over time.
• The SEC and CFTC plan to coordinate to avoid overlapping crypto regulations and reduce confusion.

The U.S. crypto regulatory environment is changing fast as the SEC and CFTC move to create clearer frameworks. SEC Chair Paul Atkins introduced a new crypto rulebook and outlined steps for greater clarity in token classification. Acting CFTC Chair Caroline Pham confirmed efforts to enable regulated spot crypto trading on exchanges by 2025.

SEC Chair Paul Atkins Unveils New Crypto Rulebook

Paul Atkins confirmed the SEC will divide digital assets into commodities, collectibles, tools, and tokenized securities for better classification.

Only tokenized securities will fall under securities laws, according to the new crypto rulebook. Paul Atkins said, “The industry has operated in a fog due to outdated, paper-based securities rules.”

He stated that clear standards are necessary as digital assets evolve and as decentralized networks grow in the crypto ecosystem.

Paul Atkins said the updated crypto rulebook will help identify which tokens are securities and which are not.

He emphasized that some tokens can shift out of securities status once their networks become decentralized. The SEC will coordinate with the CFTC to ensure no overlapping rules exist in the crypto sector.

He added that regulatory clarity WOULD reduce confusion around compliance and project structuring within digital asset companies.

SEC to Target Proxy Advisory Firms and Index Funds

Paul Atkins criticized proxy advisory firms, claiming they hold too much control over corporate decisions.

He argued that some proposals have been “weaponized” by activists using governance rules to push political goals. He added, “We will revisit prior rules that were blocked and propose new ones.”

Atkins confirmed that new rules will reduce proxy advisors’ influence on mergers, executive pay, and board elections.

He stated that institutional investors will face tighter guidelines and clearer compliance standards. These updates will appear in new proposals scheduled for 2025.

Paul Atkins also pointed out that large index fund managers, such as Vanguard and BlackRock, will be subject to increased scrutiny.

He said these funds appear passive but often exert pressure on corporate leadership decisions. The SEC aims to clarify their role and obligations.

CFTC Prepares Spot Crypto Trading Framework

Acting CFTC Chair Caroline Pham said she plans to launch spot crypto trading on regulated exchanges in 2025.

She explained that this move will mirror Bitcoin futures, which former Chair J. Christopher Giancarlo introduced in 2017. She confirmed, “The CFTC will lead efforts to bring listed spot crypto to registered exchanges by next year.”

Pham emphasized the importance of market stability and investor protections in the upcoming spot crypto framework. Paul Atkins supported coordination among agencies to avoid regulatory conflicts as the SEC and CFTC refine oversight of digital assets.

The SEC’s crypto rulebook, outlined by Paul Atkins, will FORM a central part of that effort to provide regulatory clarity. Atkins added that during the recent government shutdown, some firms used manual methods to go public under the 20-day rule.

He said these companies had previous SEC feedback and proceeded without new reviews during the agency’s pause. Paul Atkins concluded that such workarounds will likely continue until IPO processing fully resumes in early 2025.