In a major win for the digital asset industry, the U.S. Securities and Exchange Commission (SEC) has introduced sweeping plans for crypto regulation that could reshape how cryptocurrencies are governed in American capital markets. SEC Chair Paul Atkins revealed the details in Washington this week, outlining a bold vision for modernizing securities laws to align with blockchain-based innovation.
Crypto Regulation Reform Gains Momentum
Atkins announced that SEC staff have been directed to draft clear guidance on when a crypto token qualifies as a security. This move addresses one of the crypto industry’s longstanding grievances — the lack of clarity on how tokens are categorized under federal law.
He also proposed a slate of exemptions and disclosure rules tailored for blockchain-based assets. These measures would allow more flexible treatment of tokenized securities, such as blockchain-issued shares of companies or funds, which are gaining traction among major players in the crypto space.
“This represents more than a regulatory shift — it is a generational opportunity,” said Atkins during his speech at the America First Policy Institute.
Trump-Backed Push Accelerates Crypto-Friendly Reforms
The announcement comes just one day after a White House-backed working group formed by former President Donald Trump called on the SEC to establish specific crypto regulation guidelines. The group’s report urged federal agencies, including the Commodity Futures Trading Commission (CFTC), to use their current powers to facilitate digital asset trading nationwide.
Trump has openly embraced digital assets, campaigning last year as a self-proclaimed “crypto president” and vowing to support blockchain innovation. This is a marked departure from the Biden-era approach, which saw the SEC aggressively pursue lawsuits against exchanges like Coinbase (NASDAQ:COIN) and Binance for allegedly violating securities laws.
Atkins has signaled that under his leadership, such adversarial tactics will be replaced by collaboration and innovation.
Introducing “Project Crypto”
Central to this vision is a new initiative called Project Crypto, aimed at modernizing outdated financial rules for a blockchain-driven economy. Project Crypto will serve as the regulatory hub for digital asset policy development at the SEC.
Atkins emphasized that the agency will immediately move to implement the White House’s crypto recommendations, including:
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An “innovation exemption” to ease entry for startups testing new blockchain models.
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Guidance on categorizing digital assets as commodities or securities.
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Drafting rules for distribution, custody, and trading of crypto assets.
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Exploring interpretative powers and exemptions to support innovation prior to formal rule changes.
Crypto Securities Could Soon Trade Alongside Commodities
A key development in Atkins’ plan is the proposal to allow certain crypto securities to trade alongside commodities on integrated platforms — a shift that would break down longstanding regulatory silos. Currently, U.S. law requires securities and commodities to be traded separately, creating compliance challenges for crypto platforms.
Atkins noted that “most cryptocurrencies are not securities,” aligning with industry sentiment and challenging the approach of previous SEC leadership. This change in stance could help ease the regulatory burden on firms offering digital tokens.
Industry Cheers, Critics Raise Eyebrows
The crypto industry has welcomed the proposed changes as a long-overdue modernization of U.S. financial laws. Lobbyists and executives have long argued that existing rules — many written decades before the advent of blockchain — stifle innovation and drive projects offshore.
The SEC’s new direction under Atkins addresses nearly all the items on the industry’s wish list, from regulatory clarity to streamlined compliance pathways.
Still, critics warn that the close alignment between crypto firms and the Trump administration raises ethical red flags. Trump’s family has launched meme coins, and he reportedly holds a stake in World Liberty Financial, a crypto platform. While the White House denies any conflict of interest, transparency advocates remain cautious.
Conclusion
Atkins’ sweeping crypto regulation agenda marks a turning point in the relationship between digital assets and traditional finance. If implemented, it could lay the foundation for a more integrated and innovation-friendly financial system — and dramatically shift the U.S. crypto landscape in the process.
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