SEC Chairman Paul Atkins signaled a major policy pivot on November 12, 2025, telling an audience at the Federal Reserve Bank of Philadelphia that “digital commodities,” or “network tokens,” are not securities in his view. The remarks mark the clearest break yet from years of enforcement-first crypto regulation, though they fall short of a formal Commission rule.
What Atkins actually said under Project Crypto
In a speech outlining the SEC’s evolving approach to digital assets, Atkins introduced a proposed token taxonomy under the initiative he called Project Crypto. The framework splits tokens into four categories: digital commodities, digital collectibles, digital tools, and tokenized securities. Only the last category, tokenized securities, would be treated as securities under the chairman’s framework.
Atkins argued that most crypto assets are not themselves securities and that tokens originally sold through an investment contract may later trade outside securities regulation once the “managerial-efforts element” ends. He said the Commission would consider staff recommendations in the coming months, framing the taxonomy as a work in progress rather than a finished policy.
Why the shift matters after years of SEC-versus-crypto fights
The SEC spent years pursuing enforcement actions against crypto projects on the basis that their tokens qualified as securities under the Howey test. That posture triggered prolonged legal battles with major exchanges and token issuers, leaving the industry in a regulatory gray zone. Atkins’ remarks represent a direct reversal of that trajectory, even if they carry no binding legal force yet.
The term “digital commodity” did not appear in a vacuum. A 2025 House committee report tied to the Digital Asset Market Clarity Act described a longstanding regulatory gap in spot digital commodity markets and estimated those assets account for roughly 70% of total digital-asset market capitalization.
For exchanges and issuers that have faced token delistings or costly legal defense campaigns, the rhetorical shift from SEC leadership offers a potential path toward regulatory clarity. Projects exploring token launches could benefit if the taxonomy eventually translates into formal guidance.
What has not changed yet
No formal SEC rule, order, or Commission vote has codified Atkins’ proposed taxonomy. The speech represents a chairman’s stated opinion, not a binding legal declaration. Market participants still operate under existing enforcement precedents until the Commission acts.
The taxonomy also does not sweep all tokens into a single bucket. Atkins explicitly carved out multiple categories, and the list is not exhaustive. Tokenized securities remain subject to full securities regulation, and the boundaries between categories are still undefined. Broader market volatility continues regardless of regulatory signals.
The Commission is expected to review staff recommendations in the months ahead. Until a formal rulemaking or no-action relief emerges, the November 12 speech sets direction but does not settle the legal framework crypto markets have been waiting for.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
