SEC Chair Paul Atkins has drawn a sharp regulatory line that could reshape the future of digital assets in the United States.
In a major shift from years of broad securities enforcement, Atkins has stated that many categories of crypto tokens, including network tokens, digital collectibles, and digital tools, should not be classified as securities and therefore fall outside the SEC’s jurisdiction.
His position opens the door for the Commodity Futures Trading Commission (CFTC) to assume broader oversight of the crypto market, potentially enabling the return of ICO-style fundraising even without fresh legislation from Congress.
SEC Chair Paul Atkins said that many types of ICOs should not be considered securities and thus fall outside the SEC’s jurisdiction. He said that network tokens, digital collectibles, and digital tools—and ICOs tied to those categories—should instead fall under the CFTC, leaving…
— Wu Blockchain (@WuBlockchain) December 9, 2025
A New Token Taxonomy Under “Project Crypto”
Shortly after taking office in April 2025, Atkins introduced a proposed token taxonomy through the SEC’s Project Crypto initiative. The framework seeks to clarify which digital assets fall under securities law and which do not, narrowing the scope of SEC authority compared to previous interpretations.
Atkins argues that an asset should only be treated as a security when its value depends on the explicit and unambiguousmanagerial efforts of others, a refined application of the Howey Test. Under this model, the majority of crypto tokens would shift into the CFTC’s domain.
According to his outline:
Under CFTC Oversight
These assets would not be considered securities:
- Network Tokens: Functional assets tied to decentralized systems where value stems from network utility rather than management promises.
- Digital Collectibles: NFTs and similar items where buyers have no reasonable expectation of profit based on issuer activity.
- Digital Tools: Tokens serving as tickets, memberships, or identity instruments.
Under SEC Oversight
Only tokenized securities offerings, digital versions of traditional financial instruments already regulated by the SEC, would remain within the agency’s strict jurisdiction.
A Reversal From Years of Enforcement-Driven Policy
Atkins’ stance marks a sharp departure from the previous administration, which often categorized most tokens as securities through aggressive enforcement rather than formal rulemaking. The lack of regulatory clarity pushed many crypto businesses overseas and chilled innovation in the U.S. market.
By tightening the definition of what constitutes a security, Atkins aims to bring companies back onshore while reducing the threat of expansive enforcement actions.
A Possible Comeback for ICO Fundraising
Industry observers are already speculating that ICO-style fundraising, largely dormant in the U.S. since 2018, could experience a revival under this model. With many tokens categorized as commodities, issuers may be able to offer sales under CFTC oversight rather than navigating the SEC’s extensive registration requirements.
Major players are already positioning for this shift. Coinbase, for example, has launched new platforms that align with Atkins’ regulatory vision, signaling growing industry confidence that the ICO market could reopen within a clearer, more predictable framework.
A Redefined Regulatory Landscape
If implemented, Atkins’ taxonomy would fundamentally alter how the U.S. governs digital assets. By assigning most tokens to the CFTC and reserving only true securities for the SEC, the new stance could reinvigorate domestic innovation while offering long-awaited clarity to crypto builders, exchanges, and investors.
