SEC Chair Paul Atkins Says Most Crypto Tokens Not Securities Under New Policy

TLDR

• SEC Chair Paul Atkins declares most crypto tokens are not securities, marking a major policy shift
• Project Crypto initiative will create unified regulatory framework for trading, lending, and staking
• SEC will allow “super-app” platforms to operate multiple crypto services under one regulatory umbrella
• Atkins says policy will no longer be set through enforcement actions, promises clear rules instead
• European Banking Authority requires EU banks to hold 1,250% risk weight against Bitcoin and Ether

SEC Chair Paul Atkins announced a major change in crypto regulation during a keynote speech at the OECD Roundtable in Paris. He stated that “most crypto tokens are not securities” and outlined plans for clearer regulatory guidance.

The announcement marks a sharp departure from previous SEC approaches. Under past leadership, the agency pursued aggressive enforcement against crypto firms and exchanges.

Atkins introduced the expanded Project Crypto initiative as the centerpiece of the new approach. The program aims to create unified regulations for blockchain-based financial markets.

The President’s Working Group on Digital Asset Markets has already provided a blueprint for these changes. This working group delivered recommendations to support the SEC’s modernization efforts.

Super-App Platform Model

The new regulatory framework will allow platforms to operate as “super-apps” for digital assets. These platforms can facilitate trading, lending, and staking services under one regulatory structure.

Atkins said these platforms should have flexibility to offer multiple custody solutions. He emphasized providing the minimum regulation needed to protect investors without burdening entrepreneurs.

The SEC chair praised the European Union’s Markets in Crypto-Assets framework. He said US policymakers could learn from Europe’s early regulatory steps.

Contrast with European Banking Rules

The policy shift comes as European regulators take a different approach to crypto banking. The European Banking Authority finalized rules requiring EU banks to hold more capital against cryptocurrencies.

Under the new European rules, unbacked digital assets like Bitcoin carry a 1,250% risk weight. This means banks must set aside substantial capital buffers when dealing with these assets.

Bitcoin and Ether fall into “Group 2b” under the European framework. These draft standards await review by the European Commission.

The European Banking Authority’s conservative approach contrasts with US moves. The FDIC now allows supervised banks to engage in crypto activities without prior approval.

Switzerland has also updated its laws to support crypto custody and stablecoin guarantees. This creates a patchwork of different regulatory approaches across jurisdictions.

Atkins called for international cooperation to facilitate more innovative markets. He emphasized working together to extend freedom and prosperity through better regulation.

The Project Crypto initiative represents the SEC’s attempt to provide predictable rules for digital assets. This approach aims to keep innovation in the United States rather than driving it offshore.

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