SEC: Most Crypto Assets do not qualify as "securities," the old rules from the 1930s are no longer applicable.

Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), has recently launched a fierce attack on the current regulatory status. In a landmark speech, Atkins articulated a statement that cryptocurrency founders have long yearned to hear: most crypto assets are not securities. This completely undermines all of Gary Gensler's assertions. This is good news for crypto assets, Bitcoin, and alts. Atkins announced the "Project Crypto," a comprehensive regulatory reform expected to transition the SEC's policies from the simulation era to the on-chain era. The initiative is supported by the latest task force report released by the Trump administration.

Atkins: The old rules don't work, let's set new rules

According to the "crypto project", the SEC will draft simple and targeted rules to regulate the distribution, trading, and custody of crypto assets, while also seeking public opinion. This means that there will no longer be a need to forcefully exploit regulatory loopholes like in the 1930s.

Atkins stated at the American Priority Policy Institute: "The SEC can finally stop pretending that blockchain needs Wall Street's permission to exist. The old rules don't work. Let's establish new rules."

Rewrite the Howey Test: Most Crypto Assets Are Not Securities

Atkins directly challenged the SEC's old doctrine that nearly all tokens must pass the notorious Howey Test and bow before the altar of SEC compliance. Instead, he took a pragmatic stance: the confusion over the Howey Test has led to over-compliance and fear.

Atkins stated that "most crypto assets are not securities" and instructed staff to develop appropriate disclosures, exemptions, and safe harbors for initial token offerings, airdrops, and network rewards. The aim is to bring back token allocations that have migrated overseas due to legal uncertainties. He mentioned that even securities projects would not be "marked in red" — in stark contrast to the tough enforcement strategy of his predecessor. ICOs, airdrops, staking rewards, etc., will all have tailored information disclosures, exemptions, and safe harbors. In short: launch, develop, innovate — no need for a legal team to whisper "no comment."

Trump's Cryptocurrency Revival: Driving Crypto Assets Companies Back

There is no doubt: this is part of a broader ideological shift. Trump wants a "golden age of digital assets," and Atkins is drawing up the blueprint. Part of it involves the repatriation of crypto businesses—specifically, persuading founders to return from Dubai, Singapore, and the Cayman Islands—dismantling the Byzantine high walls of "enforcement-first" regulation that forced them to flee.

He specifically mentioned "Operation Choke Point 2.0," which refers to the coordinated actions of U.S. regulatory agencies and banks aimed at cutting off the channels for Crypto Assets companies to access financial infrastructure. Atkins stated that this action is now coming to an end — this is similar to Trump’s war cry against the administrative state.

Self-Hosted vs. Super Apps: Embracing Innovation

Atkins has also set a benchmark for self-custody. "I firmly believe in the right to use self-custody wallets," he said, which is seen by most as a fundamental right in the crypto assets space. However, for those who prefer custodial institutions (such as broker-dealers or advisors), the SEC will still hold them to high standards — just not so high that it becomes unacceptable.

The situation has reached a critical moment: Atkins is ready to embrace super applications. One license can govern all applications. There is no need to cross compliance barriers across 50 states, nor to struggle with a bunch of messy federal licenses. If he gets what he wants, a registered broker-dealer will soon be able to offer token trading, staking, lending, securities, NFTs, and synthetic assets—all under one roof.

Defending Builders and Future Regulatory Landscape

Atkins has also specifically engaged with Crypto Assets developers, especially after the ongoing legal nightmare of Tornado Cash developer Roman Storm. "We must protect pure code publishers," he said. This is not just a policy stance, but a philosophical one. Under Atkins' leadership, the line between tool makers and intermediaries will be redrawn. Caution is advised. This marks a potential significant change in how the government treats open-source contributors and the actual promoters of illegal funding.

There is still an uncertain factor: Congress is still brewing legislation that may designate the Commodity Futures Trading Commission (CFTC) as the leading regulatory agency for cryptocurrency. If this happens, the responsibilities of the SEC may be narrowed or shifted to focus solely on protecting investors. Atkins is well aware of this, but he will not sit idly by. While Congress figures out how to spell "DeFi," he is building the future.

Conclusion:

The "crypto project" plan announced by SEC Chairman Paul Atkins marks a historic step for the United States in the regulation of Crypto Assets. The plan aims to bring the policies of the U.S. Securities and Exchange Commission from the simulation era into the on-chain era by clarifying token definitions, simplifying the licensing process, and protecting developers. This will not only provide a clearer regulatory framework for the Crypto Assets industry but also solidify the United States' leadership position in the global digital asset space.