SEC Chair Plans Straightforward Crypto Rules

SEC Chair Paul Atkins recently stated he aims to make U.S. crypto regulations “very straightforward” so investors gain clarity on the legal framework. However, he cautioned that achieving this will take time, as the agency explores reforms to antiquated rules that predate blockchain markets. The effort aligns with Project Crypto, a broader initiative to modernize digital asset regulation.

Under Project Crypto, Atkins is directing SEC staff to draft simple, purpose-built rules for token distributions, custody, and trading. These rules are intended to include clear asset classification criteria—distinguishing between securities, commodities, and stablecoins—as well as exemptions and safe harbors for initial coin offerings, airdrops, staking rewards, and tokenized securities.

Atkins emphasized that most crypto assets are not securities, marking a sharp break from the previous leadership’s broad application of the Howey test. He said many past projects treated tokens as securities merely to avoid risk, often without justification. Instead, he wants clearer guidance so issuers can operate without unnecessary legal jeopardy.

The initiative also includes proposals to enable “super-apps,” allowing broker-dealers to offer a full suite of crypto and securities services—staking, lending, NFTs, token trading—under one federal license, easing the burden of multiple state approvals.

Atkins also reaffirmed support for the right to self-custody while pledging to modernize custody rules for registered custodians. He stressed protection for software-only developers and open-source contributors who merely publish code rather than operate financial services.

That said, Atkins warned that the rulemaking process—including drafting, public comment, and potential challenges—could stretch over several months. Business leaders and policymakers are watching congressional developments, including the CLARITY and GENIUS Acts, but Atkins stated the SEC won't wait for legislation before using existing authority to push reforms forward.