SEC Reverses Course On Crypto Classification

1. Shocking Statement From SEC Chairman Paul Atkins

On July 31st, Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), shook the crypto market with a bold declaration:

"The majority of crypto assets are not securities."

This marks a sharp reversal from the stance of former chairman Gary Gensler, who insisted that most digital assets fell under securities laws and required SEC oversight.

SEC – Official Press Release (July 2025): Sec.gov

2. Why Did The SEC Change Its Stance?

According to Atkins, the rapid evolution of blockchain technology has outpaced outdated regulatory frameworks. For years, crypto startups have operated in a legal grey area, unsure whether their tokens would be classified as securities under U.S. law.

This policy shift reflects an acknowledgment that flexible and tech-forward regulation is now necessary.

3. Introducing Project Crypto – A Tailored Framework For Digital Assets

To turn this vision into reality, the SEC has officially launched Project Crypto – a comprehensive initiative aimed at:

 - Clearly categorizing different types of crypto assets

 - Creating tailored rules that align with the unique nature of each token

 - Providing legal “safe zones” for ICOs, airdrops, and staking rewards

 - Developing guidance for custody, on-chain platforms, and tokenized financial instruments

The overarching goal? To foster innovation and make the U.S. a global leader in blockchain regulation rather than a barrier to progress.

4. Crypto Community Reacts: Optimism With Caution

The announcement sent waves of optimism throughout the crypto space. Many projects that had paused or moved abroad due to legal uncertainty are now considering a return to the U.S. Institutional investors are also showing renewed interest.

However, legal experts caution that uncertainty still lingers. As attorney Bill Morgan put it:

“The SEC has gone from saying most crypto assets are securities to saying most are not. But until there’s clear legislation defining what is and isn’t a security, regulatory ambiguity remains.”

5. Conclusion: A New Era For Blockchain In The U.S.

Atkins’ statement is more than a policy update – it's a historic turning point for the digital asset industry in the United States. While true clarity will ultimately depend on Congressional action, this bold move from the SEC sets the stage for a more innovation-friendly future.